Livelihoods Manual

MAY 2009
WOMENS REFUGEE COMMISSION
Building Livelihoods
A Field Manual for Practitioners in Humanitarian Settings
The Womens Refugee Commission advocates vigorously for laws, policies and programs to improve the lives and protect the rights of refugee and internally displaced women, children and young people bringing about lasting, measurable change. The Womens Refugee Commission is afliated with and is legally part of the International Rescue Committee (IRC), a non-prot 501(c)(3) organization, and does not receive direct nancial support from the IRC. 2009 Womens Refugee Commission ISBN: 1-58030-080-079-0 Womens Refugee Commission 122 East 42nd Street New York, NY 10168-1289 212.551.3115 info@wrcommission.org womensrefugeecommission.org
Front cover: A Bhutanese refugee woman sells vegetables to other refugees in the camp in Nepal, illustrating what is possible in a closed camp. Lauren Heller Back cover: Displaced Chadian women collect small sh in a pool in the waddi near Dogdore, Chad. UNHCR/H. Caux
MAY 2009
Building Livelihoods
A Field Manual for Practitioners in Humanitarian Settings
iii v
Introduction Conceptual Framework
Contents
2 28 56 94 114 152 190 222 254 Working with Host Governments Training and Placement Programs For-Work Programming Building In-Camp Economies Supporting Agrarian Interventions Micronance Interventions Enterprise Development Public-Private Partnerships Leveraging Remittances 288 289 293 297 301 304 310 316 320 323 Tools and Approaches Situation Analysis Conict Analysis Participatory Needs Assessments An Approach to Participatory Rural Appraisal Market Assessment An Approach to Value Chain Analysis Labor Market Assessment Organizational Capacity Assessment Monitoring and Evaluation
327 329 333 337 341 349 351
Further Resources for Assessment Tools and Approaches Additional Resources Annex: Minimum Standards for Economic Recovery After Crisis Acronyms and Abbreviations Glossary Acknowledgments Feedback Form
Introduction
Too often, livelihood programs serving refugees, internally displaced persons (IDPs) and those returning to post-conict countries and regions are poorly designed and inappropriate for the context, and seldom lead to sustainable employment and income-generating activities. Though their intentions are good, program developers and managers struggle against enormous odds to do the best they can in very difcult working environments, often under immense time pressures and with too few resources. Information and tools on how to select and design appropriate livelihood programs are seldom available in usable formats with clear guidance. And yet, everyone, from local community-based organizations to international nongovernmental organizations to policy makers and donors, wants to support, fund and implement more effective programs to support the self-reliance of the displaced. As the length of displacement continues to extend for many populations, now averaging 17 years for the majority of refugees, it is essential that we get it right and design these programs better. This eld manual has been developed to provide practitioners with usable information and helpful tools so that they can design and implement more effective livelihood programsprograms that are based on market demand and are contextually appropriate; programs that build on the existing skills and experience within the target population; and programs that enhance the dignity and options for the displaced. In this era of growing food and economic insecurity, it is imperative that we begin to rethink the role of humanitarian assistance and shift away from handouts and enforced dependency. Humanitarian assistance must be about restoring lives, supporting families and rebuilding communities. It must be about restoring dignity. It must be about creating opportunities and preparing the displaced for their future lives in their countries and regions of origin, or wherever they may nd a long-term living solution.
iii
This publication by the Womens Refugee Commission is based on two-and-a-half years of research and 10 eld assessments covering all contexts of displacement: refugee, IDP and returnee situations, in camp settings, as well as in rural and urban areas. It is informed by several pilot projects that were funded from one to three years in places such as the refugee camps on the Thai-Burma border; with women at-risk of gender-based violence who have returned to Burundi; and in the slums of Bogot, Colombia, home to a large displaced population. The eld manual has been reviewed and contributed to by experts from the NGO practitioner, UN and academic communities, including those who participated in a three-day intensive workshop at the Rockefeller Foundations conference center in Bellagio, Italy. This eld manual does not provide all the answers, nor does it provide models that can be simply replicated from one context to another. Instead, it provides guidance, ideas, tools and suggestions to assist practitioners and program managers in making strategic choices about their livelihood interventions so that programs can be appropriately designed and have greater impact. This eld manual was produced to assist practitioners who desire to strengthen their skills and enhance their knowledge in order to do better livelihoods and economic recovery programming. The Womens Refugee Commission hopes that the manual helps members of the humanitarian community succeed in our endeavor to do betterthe displaced deserve no less.
iv
Conceptual Framework
INTRODUCTION
Humanitarian aid has historically focused on emergency relief.1 This has translated into programs that focus on addressing the immediate needs of displaced persons, such as food, water, shelter and health care.2 As a result, aid to displaced populations has focused on short-term assistance, with the expectation that resettlement or return would occur in the near future. However, today, a person uprooted by conict will remain displaced for an average of 17 years. Therefore, assistance to displaced populations must emphasize the provision of skills, training and economic opportunities leading to self-reliance in order for displaced people to regain or develop new livelihoods and rebuild their lives. A livelihood, as dened by Robert Chambers and Gordon Conway, comprises the capabilities, assets (including both material and social resources) and activities required for a means of living.3 The livelihood strategies that displaced households develop to secure a means of living depend on how they can strategically utilize their livelihood assets; respond to the vulnerabilities they face in the unstable context in which they live; and the policies, institutions and processes that have an effect on their lives and livelihoods. The livelihood outcomes that households achieve with their strategies are a result of all these factorstheir assets, their vulnerabilities and the policies, institutions and processes that either enhance or restrict their livelihood options.
Conict can have a profound and long-term negative impact on livelihoods. Those who are displaced by conict are forced to adopt new strategies to provide for themselves and their households. While already vulnerable due to displacement, new livelihood strategies can increase the risk of violence, abuse and exploitation against displaced people. Women and young people are particularly vulnerable in these settings. Recurring armed conict, along with sexual and domestic violence, the sickness or death of family members or loss of employment, can quickly collapse womens income generation activities and severely deplete their assets. Women often have no safety net; they usually ee with few resources and little preparation and, at times, become separated from or lose family members. A lack of access to economic opportunity while displaced forces many women and girls to resort to harmful measures to survive. These may include working as commercial sex workers, putting themselves at risk of rape, violence and abuse through the collection of rewood in unsafe areas or trading sex for food to compensate for the often inadequate humanitarian aid provided. Access to safe, dignied livelihoods mitigates the risk of exploitation and abuse. Programs supporting the livelihood opportunities of displaced people should seek to increase participants self-sufciency through improved access to resources and economic opportunities that help them sustain a dignied means of living. To do this effectively, programs must be designed to meet the specic needs of the target community. Far too often, organizations running livelihood interventions apply program models without taking into consideration the local context, the specic dynamics of a particular displaced community, the particular needs of the targeted program participants, the dynamics of the market system within which they operate, the impact of conict on the community, or the desired
outcomes and expectations of both the community and individual participants for livelihood interventions. As a result, livelihood programs often do not successfully increase participants incomes or their ability to become more self-sufcient. Participants in these programs are left with little choice but to continue to resort to negative, and often unsafe, coping strategies to support themselves. Dependence upon humanitarian assistance, coupled with the frustration of not being able to safely provide for their unmet needs, leads to a profound waste of human capacity and potential for displaced people, many of whom possess valuable skills and experience. Designing livelihood interventions that promote greater self-reliance not only improves the lives of participants themselves, but can also alleviate the burdens often placed on host countries and humanitarian aid organizations to support them, of particular concern as funding to support protracted displaced populations decreases over time.4
The Womens Refugee Commission developed this eld manual with the goal of providing practitioners with tools, guidance, lessons learned and promising practices collected through extensive eld and desk research from settings of displacement across the globe. Equipped with these context-specic tools, practitioners will be able to improve the quality of livelihood interventions and increase the extent to which they can protect and empower the displaced.
vi
A CONCEPTUAL FRAMEWORK
HOW TO USE THIS FIELD MANUAL

This eld manual was designed to aid practitioners in selecting the appropriate livelihoods intervention for their target community. This Conceptual Framework outlines the steps necessary to design livelihood interventions that will promote participants economic independence. The tools and approaches referred to in this chapter are provided in greater depth at the end of this eld manual in the Tools and Approaches section, and are meant to accompany the recommended steps provided in each of the intervention chapters.
Essential Elements. This section describes the essential elements the particular intervention must have to succeed. Preliminary Steps. This section describes the various analyses, assessments and approaches needed to determine whether the intervention is best suited to the target community. The Preliminary Steps section works in tandem with the suggested steps in this Conceptual Framework. The Tools provided at the end of the eld manual are designed to be used along with the steps suggested in the Preliminary Steps section for each intervention. Design. The Design section in each intervention chapter provides guidance, or a blueprint, on the steps needed to develop a particular livelihoods program. Implementation. The Implementation section promotes ongoing monitoring while undertaking program activities to assess whether the program design and activities are achieving project objectives. The section also offers guidance to deal with challenges and to plan exit strategies. Monitoring is addressed in the Tools section at the end of the eld manual. Evaluation. The Evaluation section is designed to measure program impact and success. Program evaluation is addressed in the Tools section at the end of the eld manual.
LIVELIHOOD INTERVENTIONS
The livelihood interventions covered in this eld manual include: Training and Placement Programs Cash- and Food-for-Work Building In-camp Economies Agrarian Interventions Micronance Enterprise Development
Practitioners should rst follow the guidance of the Conceptual Framework, which frames the need for the various tools and approaches found in the Tools and Approaches section at the end of this eld manual. Second, once a particular intervention has been selected, practitioners should follow the various steps in the intervention chapter that will take them from the initial planning stage through the program evaluation phase. All of the intervention chapters have the same outline and structure, and include:
NON-INTERVENTION GUIDANCE
This eld manual also provides guidance to improve the effectiveness of new or existing livelihood interventions in the following chapters: Working with Host Governments. This chapter provides guidance for practitioners and advocates to enable refugees and internally displaced persons (IDPs) to access employment and
vii
income generation activities. It cites the relevant international and regional legal conventions that ensure the right to work; the right to freedom of movement; and the right to fair treatment, fair wages and suitable working conditions. The chapter also addresses how to identify barriers to employment for the displaced; the role of the UN High Commissioner for Refugees (UNHCR) in the displacement context; the host states obligations to international legal instruments; the governments laws, policies and practices; relevant stakeholders; market demand; and the local development and economic recovery context that will strengthen the argument for permitting the displaced community to develop livelihoods. Public-Private Partnerships. This chapter will help practitioners develop partnerships with the private sector or the public/government sector in order to harness additional expertise and resources, and take advantage of expanded opportunities to strengthen livelihoods programming. Remittances. This chapter addresses the ways in which practitioners can enable the displaced community to leverage the remittances they receive to build their livelihoods and reduce their economic insecurity.
Conict Analysis Participatory Needs Assessment Participatory Rural Appraisal Market Assessment Value Chain Analysis Labor Market Assessment Organizational Capacity Assessment Monitoring and Evaluation
STEP 1: UNDERSTANDING THE CONTEXT

The key to designing successful livelihood interventions is to conduct diagnostic assessments relevant to the particular intervention to better understand the needs, priorities, resources, conict dynamics, vulnerabilities and socioeconomics of a particular community or target group. Once an understanding of the context is gained, practitioners can strategically design interventions that either support existing livelihood strategies or create new income generation opportunities for displaced participants. Livelihoods Analysis
TOOLS
Guidance provided in the Tools and Approaches section at the end of this eld manual includes tools, approaches and additional resources for analysis and assessment that will enable practitioners to develop and improve their livelihood interventions. The Tools follow the steps in this Conceptual Framework and should accompany the recommended steps in the corresponding livelihoods intervention chapters. The tools and approaches are: Situation Analysis
When determining ways in which interventions can support the livelihoods of a target community, it is important to consider all the factors that affect a persons livelihood and the relationship between those factors.5
The UK Department for International Development (DFID) Sustainable Livelihoods Framework The DFID Sustainable Livelihoods Framework was developed in the late 1990s as the sustainable liveli-
viii
hoods movement grew out of the famine and food security movement prominent in development circles in 1980s.6 The UN Development Programme (UNDP), Oxfam Great Britain, CARE and other agencies were some of the rst agencies to focus on the connection between famine, food security and sustainable livelihoods as methods for poverty reduction.7 Following their lead, DFID invested heavily in research initiatives that supported the development of the Sustainable Livelihoods Framework.8 The framework was developed to guide thinking about the way livelihood systems function and their sustainability over time. Using the framework, practitioners can assess the livelihood strategies employed at the individual or household level and take into consideration all of the factors that may impact those strategies and how those impact livelihood outcomes. Practitioners using this framework to conduct a livelihoods analysis should look to identify appropriate entry points for support of livelihoods in the framework cycle, and design interventions accordingly.9
Figure: DFID Sustainable Livelihoods Framework10
Figure 1. Sustainable livelihoods framework Figure 1. Sustainable livelihoods framework
Key
KeyNatural Capital N=
H = Financial Capital F = Human Capital N = Natural Capital F = Financial Capital
H = Human Capital
S = Social Capital P = Physical Capital S = Social Capital P = Physical Capital
LIVELIHOOD ASSETS
LIVELIHOOD ASSETS
H
VULNERABILITY CONTEXT VULNERABILITY CONTEXT
S
S
P
P
TRANSFORMING STRUCTURES AND N Influence TRANSFORMING PROCESSES N & access STRUCTURES AND Influence PROCESSES
LIVELIHOOD STRATEGIES LIVELIHOOD STRATEGIES
& access
i n i o n r d o e r d e t r o t a o c h a i c e h v i e e v e
LIVELIHOOD OUTCOMES LIVELIHOOD OUTCOMES
By assessing a households resources, or assets, practitioners gain a better understanding of what resources their targeted participants have to draw from as well as which resources they are lacking. DFID denes assets as human, social, nancial, natural and physical capital.11 The framework encourages weighing the effect the ve assets have on livelihood strategies, including assets that cannot be given monetary value. DFIDs framework encourages practitioners to consider how the ve assets can be affected by shocks, trends and seasonality, which comprise the vulnerability context.
ix
Shocks. It is often difcult to plan for shocks as they, by denition, do not happen consistently. Natural disasters and conict are two of the most common shocks to affect displaced populations.12 Trends. Trends can have either a positive or negative effect on livelihoods and involve changes that take place over a longer period of time than is the case with changes brought by shocks or seasonality. These can include: population trends that put an increasing demand on resources; resource trends, such as soil erosion or deforestation; economic trends, such as ination or the development of new markets; trends in governance/politics, such as a lift on employment restrictions; or technological trends, including more efcient production techniques. 13 Seasonality. Seasonality refers to seasonal changes, such as those affecting livelihoods, production, agricultural practices, harvest times, fair weather work, employment opportunities, climate and health.14
Once the various factors are considered, a practitioner can gain a deeper appreciation for why individuals or households cope the way they do, and better understand how the outcome of their livelihoods strategy has impacted their lives. For example, if the livelihoods outcome of a certain strategy has not increased its economic security, will a household continue to have the same assets or resources, or will it slowly deplete them? A practitioner can then begin to think about which component of the framework cycle would be best supported by an intervention: building assets, promoting policy change, reducing vulnerability, and so on.
The DFID Sustainable Livelihoods Framework also recognizes that there are factors at the cultural, societal and institutional level that will impact the livelihood of an individual or household. Laws, policies, cultural practices and governmental institutions can all shape the way in which people support themselves. For example, a poor household in rural, less populated settings may have less access to private sector industries, thus limiting its livelihood options. A member of a marginalized group or community may have less knowledge about her legal rights and less access to resources, and therefore less access to safe livelihoods. For this reason, it is very important to consider the policies, institutions and practices affecting the livelihoods of a targeted participant, particularly when they present barriers to livelihood opportunities.
The Lautze and Raven-Roberts Livelihoods Framework The Womens Refugee Commission recommends using the Lautze and Raven-Roberts livelihoods framework for contexts of displacement. 15 This framework, referred to as a livelihoods model adapted for violent CHEs (complex humanitarian emergencies), is similar to the DFID Sustainable Livelihoods Framework, but has been adapted to reect the dynamics of a conict-affected setting in which vulnerability is not a separate factor to consider but rather gures prominently in every aspect of the livelihoods strategy of a displaced person. In addition, this framework takes into account the highly changeable role of each component in a livelihoods strategy during conict.
Figure: Framework: A Livelihoods Model Adapted for Violent CHEs16
As the framework above illustrates, an asset in a peaceful setting could actually become a liability when conict arises. For example, households that owned cattle in preconict Darfur were once considered to be asset rich, as cattle provided income, food, social status and protection. Today in Darfur, however, access to markets has been completely disrupted by conict, and households can no longer sell the cattle or its products for prot. Further, households may be targeted for violence and theft precisely because they own cattle. As a result of conict, what was once considered an asset may now be a liability for households. Similarly, inuence on and access to processes, institutions and policies undergo changes in conictaffected settings, particularly for the displaced. Processes can include local conventions, power dynamics and cultural practices, often impacting the livelihood opportunities of the displaced. Inuence on and access to institutions in the public sector, private sector (including markets) and civil
society also affect displaced peoples livelihoods. Policies affect the livelihoods of the displaced as well. For example, issues such as the legal right to work, access to markets, and freedom of movement greatly affect the ways in which the displaced provide for themselves and their families. Enabling policies are key to successful livelihoods. Livelihoodenabling policies depend upon a refugees or IDPs legal status within the country or region of displacement, respect for the principle of non-refoulement (which prohibits forcibly returning a refugee to a territory where s/he may face persecution), issuance of work permits and the freedom to move outside of camp settings. Without such supportive policies, opportunities to develop sustainable livelihoods are severely restricted. Practitioners must identify which processes, institutions and policies impact the livelihoods of their targeted participants and develop interventions or advocacy initiatives to address them, if necessary. (See the Working with Host Governments chapter.)
xi
The Lautze and Raven-Roberts framework also makes a distinction between livelihood goals and livelihood outcomes in conict-affected settings. One may have a livelihoods goal in mind, such as protection against vulnerability; however, the goal may not be met in the outcome of the livelihoods strategy. For example, if an individual engages in a dangerous livelihoods strategy upon displacement, with the goal of increasing his/her standard of living, but ultimately increases his/her exposure to abuse and exploitation, the goal (increasing assets) and outcome (increased vulnerability) are distinct. Both livelihood goals and outcomes impact the individual or households assets, vulnerabilities and ability to inuence and access processes, institutions and policies (the feedback factor). The cyclical nature of the factors within the framework are important to consider when looking at long-term, sustainable livelihood strategies. Situation Analysis As an initial step, practitioners must understand the context in which they are working and the factors that impact the community and surrounding region. A situation analysis is the process of assessing a complex situation within its wider context, systematically gathering information, identifying the main problems and needs within a refugee population, identifying the principal resources contained within that population, and analysing the information gathered in order to facilitate the process of planning in a systematic, strategic and integrated manner.17 Key stakeholders must be consulted in a situation analysis, including host government ministries, UNHCR and other UN agencies, humanitarian aid organizations and nongovernmental organizations (NGOs), and community groups and leaders. It is critical to conduct a situation analysis that involves
the participation of targeted participants in order to triangulate information collected on the trends, available services, resources, barriers and needs of a displaced population. Practitioners should gather information through site visits, the collection of population proles and data from existing secondary sources, and interviews and inter-agency coordination meetings. Practitioners should identify changes in the local economic context, such as larger development initiatives that may exist in the region with which they can harmonize new or existing livelihood interventions. Conict Analysis In conict-affected and post-conict settings, practitioners must incorporate a conict analysis as part of their situation analysis in order to understand the ways in which conict impacts the security and livelihood strategies of targeted program participants, and implications for planning longer-term, sustainable livelihood programs. A conict analysis will provide greater understanding of the vulnerabilities and risks participants face due to the conict, and will help inform the selection of an appropriate livelihoods intervention. Constant threats of violence or further displacement hinder long-term livelihoods security and pose challenges to attaining funding and/or investment for livelihood initiatives in the region. However, if done properly, creating appropriate economic opportunities can help stabilize conict-affected communities and promote sustainable economic recovery. In order to achieve this, it is important to take into consideration relations with the surrounding host community when conducting a conict analysis, as creating economic opportunities for displaced populations while not providing the same opportunities for those in the local community can strain relations and lead to increased levels of insecurity within the region. To mitigate tensions and facilitate peaceful coexistence, practitioners should seek to
xii
design livelihood projects that create opportunities for the targeted displaced population while also beneting the surrounding community. Participatory Assessments Assessing the local context and the role of conict in a region is not sufcient to gain an understanding of the livelihood needs of targeted program participants. In order for a livelihoods intervention to be successful, practitioners must take into account the livelihood priorities voiced by the targeted participants themselves and understand their current economic coping strategies. Practitioners must engage targeted participants and their communities from the very beginning of a project cycle, framing the project to meet their stated priorities. Further, the expectations of potential participants and the community must be clear. Practitioners must inform targeted individuals and groups about opportunities available to them. Sound programs will reect the participation of the displaced community in selecting and designing interventions, as well as in the selection of outcomes by which to measure program success. Failure to include potential participants in program planning can lead to undesired outcomes, unintended consequences and, worse, a breakdown in trust between participants and aid providers. As part of the participatory assessment process, practitioners must seek to identify and understand the ways in which targeted participants are currently coping to fulll their needs. Questions to be answered include: How are they meeting their nutritional, economic, education, protection and health needs? What are the successful strategies targeted participants have developed to meet these needs? What are the most common livelihood strategies of the displaced community? What are the unique livelihood strategies of women and young people? What negative coping strategies are
being employed because more positive options are unavailable or inaccessible? What members of the community are the most vulnerable and therefore most likely to adopt harmful coping strategies? Finally, what needs continue to be unmet? Understanding how targeted program participants are currently coping gives practitioners some initial evidence as to the available resources and the motivations and needs of displaced people. The process of identifying coping strategies will also highlight some of the constraints, market dynamics and social, cultural, ethnic and religious practices that shape the target community. There are several recommended techniques for conducting participatory assessments. One of the most popular techniques, participatory rural appraisal, recommends using methods such as observation, interviews with community members, discussion groups, workshops and even games in which community members prioritize their needs, resources and livelihood objectives. Regardless of the approach used, participatory assessments aim to engage the target population in program design, implementation and monitoring and evaluation, and ensure that programs meet expressed needs and are based on local knowledge and experience.
STEP 2: SELECTING AN INTERVENTION

Market Analysis Once a practitioner understands the impact of conict, current coping strategies, constraints, motivations, needs, vulnerabilities and resources available to targeted participants, it is important to think proactively about what type of intervention would best meet their livelihood needs. Livelihood
xiii
interventions should provide increased economic opportunity and increased access to resources. In order to achieve this, practitioners must base all interventions on market information and seek market linkages while being mindful of the constraints identied by the situation analysis and conict analysis. The market depends upon the context. For some contexts, this can mean preparing participants for entrance into markets back in their countries of origin following return, or to Western markets, if they are likely to be resettled. For others it can mean supporting and growing the in-camp economy in refugee or IDP camps. It might also mean training participants to work for local private sector companies or linking target groups to existing micronance institutions. It could mean starting small-scale savings-led activities that help participants save to mitigate shocks, trends or seasonal constraints. The intervention should depend on available market demand, the local context and labor supply needs. The market analysis process involves conducting: 1) a market assessment; 2) value chain analysis (discussed below); and 3) a labor market assessment. Supply and Demand Assessments Practitioners should design programs that reect market demand so that displaced participants livelihoods will be viable. In order to do this, practitioners must rst conduct market assessments to understand the market dynamics in a targeted area. Questions to include in a market assessment are: What priority goods and services are available? Which goods are bought most often? How has conict affected the availability and the purchase of these goods? Where do people buy goods? How many buyers are there in a market compared to sellers? Are wholesalers and traders able to respond to an increase in demand for their goods? What are the government policies and restrictions that affect the market economy? What is the rate of ination?
These questions and others must be answered to ensure that livelihood interventions respond adequately to market demand. Understanding how the private sector has responded to shocks in the market in areas of displacement allows practitioners to design interventions that foster and support naturally occurring enterprise development. It is imperative that livelihood interventions do not dictate or compete with the enterprise development efforts of the community.18 Programs should be designed to support and build the capacity of local enterprises. Successful interventions have linked struggling local enterprises to business and technical consultants, in addition to providing direct assistance to bolster productivity and growth. This type of intervention can enable local enterprises to deliver the services needed by the community rather than depend on aid organizations. Further, programs must look at barriers to market access. Assessing the barriers that prevent a population from accessing a market is imperative to the success of an intervention. For example, pastoralists with limited access to markets may not be able to buy sufcient livestock and feed to support themselves. In order for practitioners to effectively address this access issue, they must consider road conditions, storage capacity, locations of village and regional markets, market prices, terms of trade and geographical areas of conict. Practitioners can then identify which barriers are the most important to overcome. They may decide in this example to focus on road repair and constructing grain storage facilities rather than administering direct aid to the pastoralists.19 Finally, market analysis allows practitioners to identify emerging markets that show potential for future economic growth. Many vocational training interventions saturate already-restricted markets
xiv
with a surplus of tailors or carpenters due to a lack of understanding of supply and demand. By identifying new and growing markets that will require an increased supply of labor or production in the near future, practitioners can create pathways for participants to long-term self-sustainability. This may include identifying new private sector initiatives, such as the opening of a factory or processing plant that will need to hire skilled employees. It may also require further investigation into new trends in the informal economy. Identifying thriving entrepreneurial endeavors, such as mobile phone charging stands or motorbike taxi services, can also help practitioners design interventions that are truly market driven. Choosing an appropriate livelihoods intervention should also be done with the supply dynamics of the target community in mind. This can mean designing programs that reect labor market needs and opportunities to prepare participants to nd work in their current location or preparing them to participate in the labor market upon resettlement or return. In Guinea, for example, refugee relief practitioners recognized Liberias strong need for teachers in the post-conict rebuilding process. To address this demand, they designed a program that trained and certied Liberian refugees in Guinea as teachers. Through linkages forged with the Liberian government, many of these teachers were placed in teaching positions upon return.20 Understanding the supply dynamics can also prevent agencies from implementing programs that might cause harmful market distortion. For example, emergency cash aid distributions and cashfor-work initiatives can cause ination if administered without regard to a markets ability to absorb an infusion of cash.21
Value Chain Analysis Value chains encompass the full range of activities and services required to bring a product or service from its conception to sale in its nal markets whether local, national, regional or global.22 A value chain analysis is a business management tool used to assess how products gain value as they pass through all the range of activities necessary to bring a product to market. Practitioners should conduct a value chain analysis when seeking to improve the enterprises of targeted participants, assisting them with adding value to their products, or to identify entry points in the market for potential entrepreneurs or employees. Mapping the value chain will help create a systemic approach to livelihoods program design, improve the potential of businesses, clarify market actors and help dene relationships between suppliers, producers and customers. It further enables practitioners to identify the most appropriate livelihoods intervention along the value chain as well as the needed support services, such as technological development, technical assistance, skills training, marketing or access to nancial services.
STEP 3: INSTITUTIONAL AND ORGANIZATIONAL CAPACITY ASSESSMENT

An institutional or organizational assessment must be conducted in order to fully understand all of the resources a practitioner can draw from to implement a livelihoods intervention. Such assessments will determine whether the organization has the staff, experience, knowledge, expertise and resources to design and implement the type of livelihoods intervention deemed most appropriate. An assessment of the potential implementing organizations strengths is necessary to make an informed and responsible decision as to whether a
xv
particular type of livelihoods intervention might be best initiated by another organization with more appropriate expertise. It is critical not to duplicate or establish parallel services where other providers exist and are serving similar target groups. This is particularly relevant when looking at interventions that require more technical expertise, such as micronance.
organizational and developmental sustainability. Program information management and impact assessment methodologies span different quantitative, qualitative and participatory approaches, and vary greatly according to the nature of organizational leadership, commitments and funding constraints. Unexpected impacts should be reected in impact assessment indicators, such as the rate and nature of violence against women or young people. Indicators based upon objectives established and reviewed during the participatory program planning, implementing and monitoring processes should be a combination of the objectives of the implementing organization and those of the participants. If external evaluators are hired to conduct impact assessments, indicators chosen based upon their own criteria without consultation of program participants are unlikely to correspond with participants objectives. Nonparticipatory evaluation designs may capture what works from the organizations perspective, but are unlikely to capture participants perspectives on what works and what does not work.
STEP 4: PLANNING TO MONITOR AND EVALUATE OUTCOMES

Monitoring and evaluating livelihoods program outcomes provide important learning opportunities for the implementing organization, its participants and the wider humanitarian community serving conict-affected populations. Livelihood programs for the displaced should be monitored and evaluated not for economic results alone, but for their effectiveness in supporting the practical needs and strategic priorities of their participants. Impact assessments of livelihood programs should be designed both to prove impact as well as to improve practice.23 A exible monitoring and evaluation methodology should be built into the design of a livelihoods program from the beginning. Monitoring is an important part of program evaluation, and may reveal unintended consequences of the program during the implementation phase. Ongoing monitoring will help practitioners change the course of the project if it becomes clear that certain activities are undermining the project objectives. Evaluations should seek to evaluate the programs impacts on self-reliance, poverty reduction, sustainable livelihood strategies, protection against exploitation and abuse, and gender equality, as well as on
PROMOTING EQUAL ACCESS FOR WOMEN

Women are particularly vulnerable to abuse and exploitation when displaced and are made further vulnerable by their lack of economic security. It is important to take into account the change in gender roles and socioeconomic status that often occurs during displacement.24 This shift can cause tension between men and women, as many women become the households primary breadwinner. It is imperative to implement livelihood programs that specically benet women, while at the same time involving men. From inception, livelihood interventions should anticipate the differing impact
xvi
upon the lives and relationships of women, girls, boys and men. Participation in a livelihoods program can challenge or reinforce existing social and economic inequalities through unexpected positive or negative consequences. Simply targeting women does not guarantee that they will enjoy increased decisionmaking power over nancial resources, nor does it address their social and economic marginalization. Programs that take steps to address constraints and inequalities that women face in their relationships, roles and responsibilities are more likely to succeed in supporting them to achieve their livelihood goals. In conict-affected environments, the responsibilities of women to feed, clothe and care for children, older people and those who are ill and have disabilities are compounded by new or heightened pressures to generate income. Time-use studies have shown that womens unpaid and paid work burdens in the household, the market and the communitymake for long and exhausting days. Extensive time devoted to caring for dependent members of their household prevent many women from pursuing educational or training opportunities, or engaging in much-needed leisure activities. When increases in economic productivity are not balanced with reduced household workloads, the consequences can include exhaustion and deteriorating health. Livelihood interventions must not add to the frequently overwhelming burden of labor many women shoulder, but instead should accommodate their needs. Programs should be designed to foster womens participation by providing child care, supplying piece-rate income generation projects women can complete at home or scheduling meeting times that are convenient so as not to deter women from participating.
CONCLUSION
The frameworks and tools presented here, used appropriately, can guide and shape economic program selection, design and implementation, thereby enhancing program effectiveness and impact. More effective programs result in the creation of needed skills, real employment opportunities and sustainable income generation for program participants. The responsibility of program managers is to ensure they are choosing, designing and implementing the best programs possible, as the participating refugees, internally displaced persons and returnees deserve no less.
NOTES
1 Machtelt De Vriese, Refugee Livelihoods: A Review of the Evidence, UNHCR Evaluation and Policy Analysis Unit, February 2006, pp.1-2, www.reliefweb.int/rw/lib.nsf/ db900sid/AMMF-6T7GW3/$le/UNHCR-Feb2006. pdf?openelement. Ibid, p. 5. UK Department for International Development (DFID), The Sustainable Livelihoods Distance Learning Guide, DFID Sustainable Livelihoods Guidance Sheets, DFIDadaptation of Chambers and Conway (1992) (April 1999), www.eldis.org/vle/upload/1/document/0901/ section1.pdf. See note 1. DFID, Framework Introduction 2.1, DFID Sustainable Livelihoods Guidance Sheets (April 1999), www.eldis.org/ vle/upload/1/document/0901/section2.pdf. Livelihoods Connect and Eldis, Evolution, www.eldis. org/go/topics/dossiers/livelihoods/what-are-slas/evolution. Ibid. Ibid. See note 5, p. 1. See note 3. See note 5. Ibid. Lili Stern, Guiding Principles and Practices for Sustainable Youth Livelihood, International Rescue Committee,
2 3
4 5
6 7 8 9 10 11 12 13
xvii
Presentation, Youth and Livelihoods Workshop, Accra, Ghana, April 18, 2007. 14 15 Ibid. See Sue Lautze and Angela Raven-Roberts, Violence and Complex Humanitarian Emergencies: Implications for Livelihoods Models, Disasters, vol. 30, no. 4 (2006): pp. 383-401. Ibid. Action for the Rights of Children, Tools: Situation Analysis (1999): p. 14, www.unhcr.org. SEEP Network, Market Development in Crisis-affected Environments; Emerging Lessons for Achieving Pro-poor Economic Reconstruction (2007), www.seepnetwork.org/ content/library/detail/5659. Mike Albu and Emmet Murphy, Market Analysis Tools in Rapid-onset Emergencies: Phase One Report. A Desk Review of Existing Market Analysis Tools in Relation to Oxfams Needs and Capabilities, Practical Action Consulting (July 2007): p. 3, www.practicalaction.org/docs/consulting/ Market_Analysis_in_Emergencies_-_Phase_One_ Report_-_FINAL.pdf. Womens Commission for Refugee Women and Children, Build the Peace: Creating Economic Opportunities in Postconict Liberia (June 2007), www.womensrefugeecommission.org/pdf/lr_econ.pdf. See note. 19. U.S. Agency for International Development (USAID), The Value Chain Framework, USAID Brieng Paper (2008): p.1, http://www.microlinks.org/ev_ en.php?ID=21629_201&ID2=DO_TOPIC. David Hulme, Impact Assessment Methodologies for Micronance: Theory, Experience and Better Practice, Institute for Development Policy and Management (IDPM) (1999): p. 7, www.micronancegateway.org/content/article/ detail/2608. See note 1.
16 17 18
19
20
21 22
23
24
xviii
xix
Working with Host Governments

INTRODUCTION
Livelihood interventions are a key protection tool for refugees and internally displaced persons (IDPs), as they contribute to their social, emotional and economic well-being, their long-term food security and their ability to protect themselves against shocks and vulnerability. Recognizing the need for livelihoods development is vital to a transformation in the way the international community thinks about humanitarian assistance. There must be a conceptual shift from dependence on humanitarian aid to self-reliance, which not only reduces vulnerability for displaced people in protracted situations, but also strengthens their ability to rebuild their lives and communities in the long term. There is often a contradiction between host government policy restrictions that ban refugees from working and the international legal framework that asserts the right to work for displaced people to work. This occurs even in displacement contexts where host governments have ratied such treaties. There are a number of international conventions that call for the right to work, fair treatment and freedom of movement of all individuals, including refugees. For displaced people, the inability to seek or engage in livelihoods can lead to impoverishment, negative coping strategies and work in the informal sector, where there are no regulations in place for pay, work hours and conditions and no safety standards. Paradoxically, while states may have treaty-based obligations, they have ultimate control over their national laws and practices. The principle of state sovereignty enables states to govern all inhabitants within their territory, as they deem appropriate.
WORKING WITH HOST GOVERNMENTS
A displaced persons pursuit of livelihoods is affected at the global, national and local level by many factors and may differ according to the displacement situationwhether in refugee or internal displacement contexts; whether in camps or settlements, or in rural or urban settings; and whether displacement is short term or protracted. Further, the political, economic and social stability of the host country and the socio-historical relationship the national population has to the displaced group(s) may play a role in allowing or restricting Livelihood interventions. Host government policies allowing displaced people to work can contribute to economic development and durable solutions: Displaced people often have the skills, experience and motivation to provide goods and services that can meet labor market needs and contribute to the economic and infrastructure development of host communities. Permitting refugees to work and gain skills will increase the likelihood that their eventual repatriation will be successful due to their enhanced economic self-reliance. The strength of livelihoods development during periods of displacement may help to avoid the recurrence of displacement following repatriation. Nonetheless, it is important to recognize the reality of host country contexts. Many host countries are plagued by poverty, political instability, scarce natural resources, weak economies, high levels of unemployment or social unrest and human rights violations. As a result, refugees and internally displaced people can be seen as a burden. In order to effectively promote access to livelihoods in such contexts, advocacy must be 1) sensitive to the scarcity of resources and 2) cognizant of opportunities in local, regional and national markets, and the
industry, production and service areas that displaced populations can ll. This chapter is meant for nongovernmental organization (NGO), community-based organization (CBO) and UN agency practitioners and/ or advocates working in the eld. It suggests that understanding the legal and practical claims for displaced peoples right to make a living can bolster advocacy arguments, which can used to promote better economic security for the displaced, host communities and host countries as a whole. This chapter provides detailed steps for assessing the host states environment for refugees and IDPs, which can help practitioners and advocates inform and develop advocacy strategies for promoting the full realization of rights.
IDENTIFYING STAKEHOLDERS
The promotion of displaced peoples livelihoods requires developing alliances and identifying policies, laws, regulations and norms that affect the income generation opportunities for the targeted population. To formulate an advocacy platform, it is important to analyze the context and propose ways in which restrictive policies can be revised to suit both the needs of the targeted displaced population(s) and the actors governing them, including the government and international agencies. The following list identies some stakeholder groups and their interests: Host government: national security; economic development; reduced burden on community resources and the environment; social stability; relations with sending countries from which the refugees come; relations with donors; and repatriation and resettlement.
Local population: security; reduced burden on community resources and the environment; social stability; and local economic development. Displaced groups: protection; access to humanitarian assistance; civil and economic rights; self-reliance; durable solutions (voluntary repatriation, local integration or resettlement); and their commitments to the outcome in their homeland. UN High Commissioner for Refugees (UNHCR): protection and promotion of the rights of refugees and other persons of concern; optimum use of funds and resources; durable solutions: voluntary repatriation, local integration or resettlement; post-conict reconstruction; and commitments to and dependence on donors. Aid agencies/NGOs: protection and the rights of displaced people; better use of funds; post-conict reconstruction; and commitments to and dependence on donors. Donors: better use of relief funds; repatriation; protection of refugees; post-conict reconstruction; regional security; and economic interests. Private sector: prot; labor force; growth and development; and expanding existing markets.
based upon the sovereignty of states, so cannot enforce adherence to treaties and customary international law.1 Advocacy at the local, national and global level is the only means by which to promote adherence. At the national level, host government policies determine the outcomes for displaced people, whether in protracted or temporary displacement contexts. States may enforce: whether displaced people self-settle, are organized in camps or settlements, or can integrate into the local host communities; whether the displaced have freedom of movement; whether they receive fair and equal treatment; whether they are granted the right to work. Restrictive regulations or practices are often based on host governments concerns regarding security and scarcity of resources. Displaced groups are often perceived to threaten or cause the imbalance of economic, social, cultural, environmental, political and inter-state stability. Poverty and high levels of unemployment can lead to hostility and xenophobia, with negative perceptions that outside groups will drain local resources. In protracted refugee situations, restrictive host government policies may reect negative sentiment within the host community that refugees are burdensome.2 In contexts where there are large inows of displaced people and/or concerns about the strain on host communities, refugee and IDP camps are established to reduce or cut off interaction with displaced groups while international relief agencies provide for their protection and assistance needs until durable solutions are reached.3
GLOBAL, NATIONAL AND LOCAL DYNAMICS

At the global level, the rights of refugees and all individualsincluding IDPsare articulated by international laws, treaties, customs and practices. However, while ideal in concept, international treaties are seldom easily implemented. There is no international body that enforces treaty obligations; moreover, the United Nations and many humanitarian agencies have a mandate for neutrality
CASE STUDY Refugee Dependence and Economic Insecurity in Kenya4
Kenya has a history of refugee-receptive policies, permitting the integration of many refugee groups into Kenyan society. In the early 1990s, the number of refugee arrivalsprimarily from Somalia and Sudan, with smaller numbers from Ethiopiaincreased dramatically, causing the Kenyan government to seek support from UNHCR. Kenyas policy shifted from permitting integration to requiring that refugees live in camps. In 2001, estimates showed that 33 percent of Ethiopian refugees, 65 percent of Somalis and 100 percent of Sudanese were residing in camps, demonstrating that large numbers of Ethiopian and Somali refugees live outside of camps. Those outside the camps are still restricted in their movements, but they are dispersed amongst the local population and participate informally in the economy, out of sight of the Kenyan authorities.5 Refugees in the camps cannot leave without a permit and their livelihood opportunities are very limited within the camps. Refugees in Kenya who live in the host community generally do so because of social networks or economic resources. Somali refugees, who share a common ethnicity, language, religion, and history of trade routes with those Kenyans who live near the Somalia border, have been more successful at integrating.6 Many Ethiopian refugees in Kenya have some nancial resources and are from urban areas, and use their refugee status with the intent to resettle rather than to receive humanitarian aid. Sudanese, however, are primarily from rural areas and have few social networks within the diaspora, and they did not have much interaction with Kenya prior to displacement. Kenya has no incentive to integrate refugee groups, as the Kenyan government has expressed its lack of need for foreign labor and it receives international assistance for the care of refugees. The livelihood prospects for Somali and Sudanese refugees are very few, which for those outside of the camps means acute poverty, unpredictable and unregulated work and/or reliance on negative coping strategies. Those in camp settings are almost entirely reliant on humanitarian aid.
Advocacy efforts can help to highlight that displaced populations can make important contributions to the local economy. Displaced groups clearly demonstrate their willingness and preference for engaging in productive livelihoods and providing goods and services to their community. Not permitting displaced groups to work can also enforce simplistic negative notions in host countries about refugees dependence and drain on local resources. Policy shifts that enable refugees and IDPs to seek livelihoods can benet the host communitys economic development and reduce the displaced populations dependence on aid. Advocacy efforts must focus on ways to compel host governments to harmonize their national laws and policies with their international treaty obligations. At the local level, the situation in the host community is particularly important because it most directly affects the livelihoods of displaced people, including the response of the local authorities, local security, economic problems, and the attitudes of the local population.7 Consequently, policies and responses by the national government may or may not be implemented as directed at the local level, which may either aid or prevent displaced groups from attaining livelihoods. When refugees and IDPs are settled in camps often in rural areas and/or close to insecure bordersaccess to land and natural resources becomes one of the crucial elements of relations between local and displaced communities. As such, the scarcity of land, paired with border security issues, often lead to serious tensions and potential conicts between the two groups. On the other hand, when camps are located in regions away from insecure borders, and where land is abundant, relations between the host and displaced communities may be less tense. Further, it is often the case that local infrastructure is built to support displace-
ment settings and local demand stimulates markets, beneting host communities in the long term and potentially reducing resentment. As a large share of refugee-hosting countries are already experiencing economic strain, host communities are primarily concerned with being able to simply maintain their inadequate standard of living. Tensions between host and displaced populations are fundamentally centered around competition over livelihood opportunities. In cases, for example, where infrastructure is being constructed to address the needs of the displaced community, practitioners should ensure that both displaced and host community workers are employed in development work. Drawing upon local knowledge and providing jobs for locals should alleviate tension and the perception that displaced people are merely burdensome on the local area. In areas affected by conict or in post-conict recovery, it is important to ensure conict-sensitive programming to promote social cohesion between the local and displaced populations.
CASE STUDY Local Development in Western Tanzania8
Initially, the vast inux of refugees from Rwanda, Burundi and the Democratic Republic of Congo into Tanzania in 1993 represented a great challenge and a burden to the national and local economies, also affecting the food security and natural resources of Tanzanian agricultural refugee-hosting regions. According to Professor Beth Elise Whitaker, expert in refugee and security issues in Africa, in response to the negative consequences of the refugee situation for local infrastructure and development resources, international and local NGOs initiated development projects for host communities in water, health, education, natural resources, and infrastructure.9 Whitaker notes, Implementing NGOs usually provided materials which were not available locally, and hired refugee laborers to complete construction. Schools were provided with teaching/learning materials, health workers were trained, and dispensaries were given equipment and drugs.10 Consequently, local host communities gained access to refugee health facilities, NGO-equipped schools, and newly built roads and transportation infrastructure: Throughout western Tanzania, more than 50 primary schools and 20 dispensaries were rehabilitated, 4 district hospitals expanded, 120 water systems were improved or installed, a community center was constructed, and several teacher resource centers were built.11 The subsequent relief and development programs in western Tanzania have, in fact, encouraged investment and opened up an inaccessible and forgotten part of the country. Host communities increased cultivation and production by using refugee labor and at times loaning their land to refugee farmers, ultimately doubling the size of host farmers cultivated lands and their production yields. Overall, the situation created both positive and negative opportunities for local hosts. Many Tanzanians took advantage of these opportunities and beneted substantially from the presence of refugees and international relief organizations.12
IDENTIFYING THE RIGHT TO LIVELIHOODS FOR THE DISPLACED

It is extremely important to distinguish between restrictive and exploitative practices that result from the lack of a policy framework that provides for a refugees right to work. While some states do allow the formal and informal economic activity of refugees, a large number of states have restrictive policies that local law enforcement ofcials use either to justify restricting the displaced from working or permit the economic exploitation of refugees. States that do not meet their legal obligations to permit refugees the right to work or ensure proper working conditions often result in displaced groups working in the informal sector without standards of protection. Restrictions in Bulgaria, for example, leave asylum seekers no choice but to enter the informal economy where abuse, exploitation, fragile circumstances and potentially dangerous and illegal work characterise the unregulated environment.13 In Thailand, many refugees engage in illegal work outside the camps in unskilled industry sectors, where locals describe the undesirable jobs as the three Ds: disgusting, dirty and dangerous.14 It is important that advocacy efforts promote not just the right to work, but also the international rights-based framework for fair treatment and sound working conditions. For displaced people, the inability to attain livelihoods can lead to impoverishment, malnutrition and vulnerability, often resulting in negative coping strategies for survival. Strategies may include selling needed personal and household items or food rations, the illegal collection of rewood and engaging in transactional or survival sex for basic needs. Exploitative relationships involving sexual favors in order to receive food or meet basic needs
is a function of poverty and an absence of alternative income generating and attractive livelihood strategies.15 It is fundamental to address insecurity that results from informal work and/or negative coping strategies. Host governments may have local and national policies in place that promote economic development and employment opportunities for the host population and may not permit displaced people to work. There are also international treaties that call for the right to work specically for refugees, and other treaties that are inclusive of all groups, including IDPs. Legal instruments also articulate rights to fair treatment and suitable working conditions, as well as freedom of movement, which are all critical to displaced people seeking livelihoods.
A. THE RIGHT TO WORK

A number of international legal instruments call for the right to work for IDPs and refugees. These include the 1951 Convention Relating to the Status of Refugees (Convention) and the 1967 Protocol Relating to the Status of Refugees (Protocol), as well as regional instruments, such as the Organization of African Unity Convention on the Specic Aspects of Refugee Problems in Africa of 1969 (OAU Convention) and the Cartagena Declaration on Refugees of 1984 (Cartagena Declaration). All states, as members of the international community, have obligations to certain standards under international human rights law. Where states are not party to the 1951 Convention or 1967 Protocol, international human rights instruments provide protections for all individuals, including the displaced. Widely recognized legal instruments include the 1948 Universal Declaration of Human Rights (UDHR); the 1966 International Covenant
on Economic, Social and Cultural Rights (ICESCR); the 1966 Covenant on Civil and Political Rights (ICCPR); and the 1979 Convention on the Elimination of All Forms of Discrimination against Women (CEDAW). These instruments can be used as a basis for a legal claim that displaced people have the right to work.
C. FREEDOM OF MOVEMENT
Freedom of movement is also a fundamental right for refugees and IDPs seeking livelihood opportunities. Fear can restrict freedom of movement and the pursuit of employment, sometimes impacting women and girls who do not have individual documentation certifying their status and who may be at risk of arbitrary arrest, including at military or police checkpoints, and/or subject to extortion, harassment and SGBV [sexual and gender-based violence] before being allowed to pass or may be deported.18 It is important for policy to distinguish between refugees and undocumented economic migrants so that refugees without documentation are not targeted for detention or deportation, the latter of which would violate the principle of non-refoulementthe forcible return of a refugee to a territory where s/he may face persecution. In camp settings, restrictions on movement can reduce opportunities to generate income and increase vulnerability. UNHCR reports: In many countries, refugees and internally displaced persons are conned to camps or settlements which may be located in isolated and insecure areas, such as border regions.Displaced women and girls who do manage to gain employment in order to support themselves or their families are at higher risk of exploitation, non-payment of wages, and SGBV, as employers know they are working illegally.19 While refugee-receiving countries may have legitimate concerns about security and resources, states are obliged to enforce working conditions that will circumvent exploitation and insecurity. Freedom of movement should apply not only to refugees under the 1951 Convention, but also to IDPs under international human rights law. Dialogue with host governments should push for the right to freedom of movement so that displaced groups are not isolated and solely dependent on humanitarian aid or negative coping strategies.
B. FAIR TREATMENT, FAIR WAGES AND SUITABLE WORKING CONDITIONS

The International Labour Organizations (ILO)16 1944 Declaration of Philadelphia stipulates: All human beings, irrespective of race, creed or sex, have the right to pursue both their material wellbeing and their spiritual development in conditions of freedom and dignity, of economic security and equal opportunity.17 The ILO is the United Nations agency whose mandate is to set international labor standards and promote internationally recognized labor rights, though it must be noted that despite its efforts, enforcement mechanisms cannot always ensure they are respected. In spite of international labor standards, and where employment restrictions for the displaced exist in host countries, displaced people often work in the informal sector where they are not protected by local or national regulations for pay, working hours, safe working conditions and other measures. Efforts to advocate on behalf of the displaced can both promote the inclusion of the displaced in the formal sector where rights are recognized, while also urging states to align their national and local policies with their international obligations.
THE INTERNATIONAL LEGAL AND NORMATIVE FRAMEWORK APPLICABLE TO REFUGEES
RIGHT TO WORK The international legal framework that calls for refugees right to work includes:
The Convention Relating to the Status of Refugees (Convention) (1951)20 Article 17.1: The Contracting State shall accord to refugees lawfully staying in their territory the most favourable treatment accorded to nationals of a foreign country in the same circumstances, as regards the right to engage in wage-earning employment. Article 17.3: The Contracting States shall give sympathetic consideration to assimilating the rights of all refugees with regard to wage-earning employment to those of nationals. The Protocol Relating to the Status of Refugees (Protocol) (1967)21 Article 1.1: The States Parties to the present Protocol undertake to apply articles 2 to 34 inclusive of the Convention to refugees as hereinafter dened. International conventions that call for the right to work for all individuals, including refugees: The Universal Declaration of Human Rights (UDHR) (1948)22 Article 23.1: Everyone has the right to work, to free choice of employment, to just and favourable conditions of work and to protection against unemployment. The International Covenant on Economic, Social and Cultural Rights (ICESCR) (1966)23 Article 6.1: The States Parties to the present Covenant recognize the right to work, which includes the right of everyone to the opportunity to gain his living by work which he freely chooses or accepts, and will take appropriate steps to safeguard this right. The Convention on the Elimination of All Forms of Discrimination against Women (CEDAW) (1979)24 Article 11.1: States Parties shall take all appropriate measures to eliminate discrimination against women in the eld of employment in order to ensure, on a basis of equalitythe right to workthe right to the same employment opportunitiesthe right to free choice of profession and employmentthe right to equal remunerationthe right to protection of health and to safety in working conditions. FAIR TREATMENT, FAIR WAGES AND/OR PROPER WORKING CONDITIONS The following legal instruments call for fair treatment, fair wages and/or proper working conditions: The Convention Relating to the Status of Refugees (Convention) (1951)25 Article 18: The Contracting States shall accord to a refugee lawfully in their territory treatment as favourable as possible and, in any event, not less favourable than that accorded to aliens generally in the same circumstances, [in regards to self-employment].
10
Article 19.1: Each Contracting State shall accord to refugees lawfully staying in their territory who hold diplomas recognized by the competent authorities of that State, and who are desirous of practising a liberal profession, treatment as favourable as possible and, in any event, not less favourable than that accorded to aliens generally in the same circumstances. The Universal Declaration of Human Rights (UDHR) (1948)26 Article 23.2: Everyone, without any discrimination, has the right to equal pay for equal work. Article 23.3: Everyone who works has the right to just and favourable remuneration ensuring for himself and his family an existence worthy of human dignity, and supplemented, if necessary, by other means of social protection. The International Covenant on Economic, Social and Cultural Rights (ICESCR) (1966)27 Article 7: The States Parties to the present Covenant recognize the right of everyone to the enjoyment of just and favourable conditions of work which ensurefair wages and equal remuneration for work of equal value without distinction of any kind, in particular women being guaranteed conditions of work not inferior to those enjoyed by men, with equal pay for equal worksafe and healthy working conditions[and] reasonable limitation of working hours. The Convention on the Rights of the Child (CRC) (1989)28 Article 32.1: States Parties recognize the right of the child to be protected from economic exploitation and from performing any work that is likely to be hazardous or to interfere with the childs education, or to be harmful to the childs health or physical, mental, spiritual, moral or social development. Article 32.2: States Parties shallprovide for a minimum age or minimum ages for admission to employment[and] provide for appropriate regulation of the hours and conditions of employment.
FREEDOM OF MOVEMENT The following legal instruments call for freedom of movement: The Convention Relating to the Status of Refugees (Convention) (1951)29 Article 26: Each Contracting State shall accord to refugees lawfully in its territory the right to choose their place of residence and to move freely within its territory subject to any regulations applicable to aliens generally in the same circumstances. The Universal Declaration of Human Rights (UDHR) (1948)30 Article 13.1: Everyone has the right to freedom of movement and residence within the borders of each State. The International Covenant on Civil and Political Rights (ICCPR) (1966)31 Article 12.1: Everyone lawfully within the territory of a State shall, within that territory, have the right to liberty of movement and freedom to choose his residence.
11
IDENTIFYING AND PROMOTING HOST GOVERNMENT POLICIES THAT SUPPORT THE LIVELIHOODS OF THE DISPLACED
The following sections are designed primarily for NGO, CBO and UN agency practitioners and/ or advocates currently working in the eld who are dealing with different displacement situations. In order to develop an advocacy strategy that promotes access to livelihoods for displaced people, a number of steps should be followed. The sections have been created to allow a coherent and systematic assessment of the host state environment. They can also be used as a tool to assist the strategic planning of advocacy campaigns and programs promoting the livelihoods of refugees and IDPs. The topic of returnees and displaced groups in urban settings is also covered below, following the sections on refugees and IDPs. Because displaced people in urban settings have unique vulnerabilities and seldom have protection, it is critical for advocates to urge host governments to develop inclusive policies for the livelihoods and self-reliance of urban refugees and IDPs, who may be invisible among the local population.
country, but refugees may also become vulnerable as a result of seeking income generation activities; they may experience discrimination, abuse, exploitation or sexual and gender-based violence. The following sections will help to identify specic barriers that can inform a strong advocacy agenda.
A.2. THE ROLE OF UNHCR UNHCRs protection mandate seeks to uphold the rights of refugees and ensure that refugee-receiving states adhere to the appropriate procedures for asylum seekers. UNHCR was created in 1950 to lead and co-ordinate international action to protect refugees and resolve refugee problems worldwide, with a primary purpose to safeguard the rights and well-being of refugees and ensure that everyone can exercise the right to seek asylum and nd safe refuge in another State, with the option to return home voluntarily, integrate locally or to resettle in a third country.32 UNHCR serves as a bridge between international law that promotes refugee rights and national governments that actually have the power to uphold or violate those rights. Practitioners must determine: What are the relations between the host country and UNHCR? Is UNHCR involved in the design and implementation of the current refugee policy? Is there a partnership between the host government and UNHCR, or do they work separately? While governments have the primary responsibility for refugees in their territory, UNHCR works with host governments and NGOs to protect and assist refugees and other persons of concern. Under Article 35 of the 1951 Convention and Article 3 of the 1967 Protocol, states parties are obliged to cooperate with UNHCR in the exercise of its functions.
A. REFUGEES
A.1. BARRIERS TO LIVELIHOODS Understanding specic barriers to livelihoods for refugees is the rst step in being able to develop an effective advocacy strategy. Not only might there be laws and policies restricting their access in the host
12
What are the existing programs and strategies of UNHCR? How related are they to your programs as a practitioner or advocate?
tioners should be thinking about how to use the 1951 Convention and/or international human rights law to compel host governments to uphold refugees right to a livelihood.
A.3. INTERNATIONAL LAW The 1951 Convention and 1967 Protocol provide the international framework for all protection-related activity for refugees. While the Convention and Protocol articulate the rights of refugees in host countries, not all refugeehosting countries have ratied them. According to UNHCR, 141 states are party to both the Convention and the Protocol, and 147 states are party to one or both of the instruments.33 Regional instruments include the Organization of African Unity Convention on the Specic Aspects of Refugee Problems in Africa of 1969 and the Cartagena Declaration on Refugees of 1984. The 1969 OAU Convention34 in effect expands upon the 1951 Convention by including man-made disaster, including external aggression, occupation, foreign domination or events seriously disturbing public order.35 The 1984 Cartagena Declaration36 goes further, and builds upon the 1951 Convention and 1969 OAU Convention by dening refugees as those who also ee from generalized violence, foreign aggression, internal conicts [and] massive violation of human rights.37 Whereas state signatories to treaties have demonstrated agreement with the treaties principles and an intention to be legally bound by them, states that have ratied treaties are, in fact, bound by the articles stipulated in those treaties. States can, however, make reservations to certain treaty provisions if they are in disagreement with them. To attempt to secure the protection of refugees within their livelihoods advocacy platform, practi-
GUIDANCE FOR DETERMINING STATES INTERNATIONAL LEGAL OBLIGATIONS TO REFUGEES

To understand the host governments legal obligations, determine: Is the host country signatory to the 1951 Convention or 1967 Protocol? When did this occur? When states are signatories, they have stated their intention to meet the principles set forth in the Convention and/or Protocol. Though state signatories are not obliged to respect the principles therein, advocates can leverage states intention to respect the principles in the Convention and Protocol in their efforts. Did the host country ratify the 1951 Convention and/or 1967 Protocol? When? States that have ratied the Convention and/or Protocol are obliged to respect the principles established by the Convention. Consequently, states that have ratied these instruments are expected to provide a refugee-receptive environment that allows refugees to pursue their livelihoods. Did the host country sign or ratify the 1969 OAU Convention or the 1984 Cartagena Declaration? Such actions indicate the countrys agreement with the instruments principles and an intention to respect the rights and protection needs of the displaced.
13
A.4. NATIONAL LAWS AND POLICIES In spite of ratication of the 1951 Convention and/ or 1967 Protocol, host governments determine if, how and when the rights of the displaced are implemented. In Article 36 of the Convention and Article 3 of the Protocol, it is stipulated that contracting states communicate the laws and regulations that they adopt to ensure the application of the treaty to the Secretary-General of the United Nations.38 However, it is not unusual that a host country either 1) does not have laws relating to refugees rights or a clearly articulated refugee policy, or 2) does have a refugee policy, but its implementation is irregular. Nevertheless, while states may lack a refugee policy, they may have regulations or practices that either facilitate or impinge on refugees economic activities, freedom of movement and right to work. It is important to identify which rights are restricted by current policies in order to develop a targeted advocacy strategy to change them. If the local host communities are already under economic duress and face food insecurity, an inux of displaced people will inevitably cause competition for the same scarce resources, causing tension between the host and displaced populations. This tension is one of the key elements that affects the attitude of the government and its national and local policies. It is therefore critical for practitioners to identify ways in which both displaced and host communities could benet from a change in restrictive policies. The presence of refugees can also justify an increase in foreign aid and the reception of refugees can sometimes be seen as part of a governments broader development plan.39 UNHCR argues that the assistance delivered by UNHCR to refugee settlements could be better used if considered in a productive way, as a start-up motor and indeed a pull factor, for additional investments and assistance
by the development agencies.40 States can benet greatly from the humanitarian assistance they receive as refugee hosts. As host governments are often concerned about the potential for protracted refugee situations, discussing the goal of repatriation as a durable solution may be important when approaching host governments about the need for refugee livelihoods. UNHCR argues that governments should recognize the potential of refugees in protracted situations to make economic contributions while also gaining self-reliance.41 Host governments may be receptive to permitting refugees to have livelihood opportunities not only because of their potential for positive local impacts, but also because ultimately, refugees self-sufciency can facilitate security if and when they return to their home country, and potentially lessen the recurrence of displacement.
GUIDANCE FOR UNDERSTANDING AND UTILIZING NATIONAL POLICIES

Identify the following policy considerations: What is the current refugee policy in the host country? What rights does it include or lack? What is the nature of past regulations, policies, laws and legislation about refugees? Were they linked to any particular event, period, party or interest group? Did particular states or external factors inuence these policies? What was the nature of these past policies in terms of refugees access to livelihoods? Did these factors set a precedent? It is important to know the host states past practices and experiences with refugee situations. Such an understanding will enable practitioners to borrow from effective advocacy models and also learn where restrictions must be overcome.
14
History of Refugee-receptive Policies: Practice can set a precedent in countries where refugee-receptive policies have previously existed. For example, if a country has a long history of migration, integrated populations and large-scale refugee inuxes, it is possible that the host government and its communities will be open to refugee-receptive policy proposals. Determine whether past refugee groups were given different consideration or preferential treatment. Moreover, if in the past the host government permitted refugees to pursue livelihoods strategies, move freely, and exchange their knowledge and services with local host communities, such a history should be incorporated into new proposals. Policy proposals should be informed by past practice, existing structures and networks. History of Restrictive Refugee Policies: If a host country does not have a history of hospitality and refugee-receptive policies, former structures and advocacy attempts will not be helpful. Instead, advocacy must be based on the host countrys values and its current socioeconomic and political situation. Beyond this, advocacy must look to the host countrys geopolitical and economic interests, inter-state relations and relationships with international organizations. Advocates can then frame the importance of refugee livelihoods in relation to the needs of the local and national host communities. Is there national legislation regarding refugee policy? Is it implemented? To fully understand existing policies, it is crucial to identify the exact reasons the host government uses to justify restrictive policies, as well as assess how substantiated they are. Only by demonstrating the ways in which restrictive policies are both unnecessary and counterproductive is
it possible to compel the host government to reevaluate its existing policy.42
IDENTIFY HOW NEEDS IN THE HOST COUNTRY CAN IMPACT REFUGEE POLICIES
It is important to understand the host countrys socioeconomic concerns related to its national population and development efforts. Seek to understand: What are the existing strategies, programs and policies of the host government to deal with the socioeconomic problems of its citizens? How can those problems be addressed by programs that promote refugee livelihoods? Is there a link between the host countrys concerns and the displacement situation? Is there a possibility of developing refugee aid and development programs to link refugee relief with local development policies? Does the host country have a plan for national development? To create a stable and effective refugee policy that satises both the needs of refugees and those of the citizens of a host country, it is important to understand the common challenges for both groups. This approach is vital precisely because it links the interests of the government with those of the displaced on one side and humanitarian aid and development programs on the other. In this way, host countries can leverage funds received for humanitarian aid that will also benet its citizens. Consequently, helping refugees becomes an interest of national investment, not merely an obligation.
15
A.5. LOCAL LAWS AND PRACTICE Although national governments create refugee policies and responses, it is often the local or provincial authorities that determine the actual degree and scope of the implementation of refugee policies. With camps and settlements often located in remote and isolated regions of the host country, refugees livelihoods are often dependent on the goodwill and cooperation of most of the local population, their leaders, and the local authorities.43 The attitude of local communities toward refugees is largely inuenced by perceptions of what parties benet from the presence and work of refugees. If a governments refugee policies are geared towards taking advantage of refugees presence and using them as social capital, unease and resentment by the local population can grow into a more tolerant cohabitation. Practitioners should identify sectors that are suitable for the contribution of refugees and use the potential development benets as leverage for host governments to improve their refugee policy.
Are there existing tensions between the local community and the refugee population? What are the problems facing local communities? Could livelihood programs for refugees cause tension locally and contribute to their vulnerability? It is important to ensure that employment opportunities are also available to members of the local population, as this can alleviate tension while tapping needed skills and local knowledge. A.6. IDENTIFYING STAKEHOLDERS In order to advocate for livelihoods for refugees, it is critical to learn not only about the current refugee policy of the host country, but also about the actors relevant to the issue. Advocates should seek to identify the main proponents and critics of the existing refugee policy and understand their interests. Further, it is important to identify the institutions and methods involved in the implementation of the existing refugee policy and whether these actors concerns were addressed by the policy.
GUIDANCE FOR UNDERSTANDING AND UTILIZING LOCAL POLICIES

Identify: What local laws exist that impact refugees right to work or access to the labor market? How is actual practice distinct from existing laws? It is important to identify what is actually occurring on the local level. For example, national and local laws may permit refugees to work, yet in practice they may face barriers that discourage their participation. Conversely, laws may not permit refugees to work, yet they may be employed in the informal sector where there are few protections in place.
IDENTIFYING LOCAL AND NATIONAL STAKEHOLDERS

Identify: Is there a government ministry for refugees? Do national institutions handling refugee matters work with UNHCR? If yes, how closely? If not, why not? Is there a regional or local government ofce that deals with refugee concerns? If so, how independent is its scope from the central government? What are their channels of communication? What are the institutions involved with developing and implementing refugee policy?
16
What are their interests, motives and explanations for the policy? Determine how government, private sector and local groups may benet from local economic development and refugees right to livelihoods. How was the refugee policy designed and who were the main proponents and/or creators (e.g., political parties, interest groups and agencies)? What actors are critical of the existing refugee policy? Have they taken any steps to seek revisions? Who are the primary NGO actors advocating for the rights of the displaced? What are their interests? Have they been effective in advocating on behalf of the displaced in the past? What were their tactics? Are they in good standing with the relevant institutions governing refugee policies? Can an alliance or coalition group be formed to further advocacy efforts?
Can the policies and strategies of these actors be linked to efforts to promote the livelihoods of displaced people? It is important to identify external actors who can assist in the creation and implementation of refugee-receptive policies. Many refugeehosting countries are recipients of foreign assistance. While it is not clear how much embassies can inuence the stance of a host government, they are important partners to have. They can bring additional attention to and invite the pressure of the international community on the host government to change its policies and provide a more receptive environment for refugees. A.7. MARKET NEEDS National and local development projects provide a strong opportunity for practitioners to link the livelihoods needs of refugees with labor market demands. Before conducting a market assessment, it is critical to understand the governmental, private sector and NGO development plans and activities. There may be existing or planned partnerships for national and local development. Advocacy should address specic government development needs and provide solutions that permit displaced groups to work.
IDENTIFYING POTENTIAL INTERNATIONAL ADVOCATES

Identify how to leverage stakeholders for advocacy efforts: Is there a country or a group of countries that actively supports humanitarian work and is economically active in the host country and/or the refugees country of origin? How active are the embassies of these countries in relief distribution, advocacy and the promotion of rights? What are the ways of getting in contact with these embassies? Are there any specic international donors actively involved in the displacement situation or the refugees country of origin? What are the ways of getting in contact with their ofces and representatives?
UNDERSTANDING THE DEVELOPMENT CONTEXT

To identify market needs, it is important to rst understand the development context. Identify: How developed are the regions around refugee camps? Are government agencies, NGOs, local groups or members of the private sector planning or conducting development projects?
17
What public-private partnerships exist for national and local development projects? Are there any nongovernmental programs in the community to support business development? Are there public documents that describe the planning of local development projects that can inform advocacy efforts? Be sure to identify the roles and responsibilities of the different actors in partnerships. How will projects be fundedgovernment, foreign assistance, humanitarian aid and/or private sector investments? Are there any local infrastructure problems that are not addressed by the host government? Are there any local institutional problems that are not addressed by the host government?
IDENTIFY MARKET AND SECTOR DEVELOPMENT

Determine: How are market demands changing? What sectors are growing or necessitating development (industrial, agricultural, service)? What trends are emerging that may lead to new markets? How can these be anticipated and leveraged? What kinds of investment, infrastructure and inputs are required to develop growing industries? What partnerships can be developed to provide for local economic growth? Public-private partnerships among government, NGOs and local, national and multinational companies can have signicant benets for local economic development and livelihood opportunities for displaced people. Is there recent private sector investment that requires particular skills or experience? How can development of a specic market sector, such as vegetable production, transportation and shing, use local experience and institutions that will keep the benets of economic development local?
IDENTIFY LABOR MARKET DEMANDS

Determine: What are the current national, regional and local market demands? What are the priorities in terms of development areas and the provision of labor? Are there any unmet labor market demands in the local community? Are there any upcoming projects or programs in need of a labor force? How can NGOs best prepare displaced groups for the demands of the labor market? How can displaced and vulnerable groupssuch as women, youth, older persons and those with disabilities or HIV/AIDS, and ex-combatants contribute to local development and labor market needs? Be sure to consider the use of unpaid skills when considering how these groups can meet labor market demands.
18
A.8. METHODS AND STRATEGIES FOR ADVOCACY Developing an advocacy platform for refugee access to livelihoods requires identifying key arguments for overcoming opposition and appealing to the interests and needs of the host government and local stakeholders. Arguments in support of refugee livelihoods should be framed so that the host government understands the benets they gain from refugees participation in the labor market: meeting labor market demands
economic development the building of needed infrastructure refugees self-reliance and reduced dependence on aid the greater likelihood of successful repatriation or integration due to improved skills and work experience Advocacy campaigns can be centered around the following strategies: Understanding Laws, Policies and Practices Knowledge about existing laws, policies and the actual practices related to refugees ability to work is essential. Where laws are restrictive and the host government has international legal commitments, efforts can be made to compel the state to meet its treaty obligations. In cases where the state has no formal obligations, advocates should push for the implementation of refugeefriendly policies that reect international human rights and refugee law and also benet the states development needs. Observing practice is just as important as being aware of the host governments laws and policies toward refugee employment. Practice can be even more valuable, in fact, as past situations can provide a precedent that can be leveraged in the promotion of refugee livelihoods. In restrictive environments where exceptions have been made for a particular migrant group in the past, practitioners should seek to understand the nature of such exceptions and attempt to use them as a model for a more integrated, inclusive refugee livelihoods policy. In the same vein, past success stories can also be used to set a standard for the inclusion of refugees in the labor market. Local and Economic Development Needs Local economic development needs can be harnessed and aligned with the advocacy agenda to encourage host governments to implement
refugee policies supporting livelihoods. For example, underdeveloped local communities in proximity to refugee camps or settlements can benet from refugee livelihoods that contribute to the economic development of their communities and region. Policy proposals may be more successful if they can build upon existing structures and programs, and enhance the current work of the host government. Foreign aid or funds from international organizations and other sources can provide a strong incentive for host governments to link their national development plan with livelihoods programming for refugees. Developing Partnerships Consider how public-private partnerships can facilitate local economic development and address labor market needs, beneting both the host and displaced communities. Practitioners should approach appropriate government ofcials, the private sector, NGOs and local actors about potential linkages between development and policy. (See the Public-Private Partnerships chapter for more information.) Self-reliance of Refugee Populations With access to livelihoods, not only can refugees make contributions to local economic development, but their skills and experience can also help them to become self-reliant. This means a more successful transition to a durable solution, which is in the long-term interest of the host government.
B. INTERNALLY DISPLACED PERSONS

Internally displaced persons livelihoods may be interrupted due to conict and insecurity within their countrys borders and because of the
19
potential for ongoing vulnerability. Instability or unrest, for example, may cause the government to separate the IDP and non-displaced populations to reduce tension, which may restrict IDPs livelihood opportunities. IDPs may have lost valuable assets in their displacement and may experience discrimination, abuse, exploitation or sexual and gender-based violence. This might discourage their participation in income generation activities, particularly if they are in areas with different ethnic and linguistic groups. While outside its mandate, UNHCR has had an evolving role regarding IDPs, providing services to many internally displaced populations since the early 1970s.44 The challenge of protection for IDPs is in reconciling humanitarian intervention with state sovereignty, according to which, states are responsible for protecting their nationals. The international community, recognizing the need for the protection of IDPswho may not only be unprotected by their government, but may even be forcibly displaced by state actorssought to create standards for internal displacement situations. In 1998, Francis Deng, then Special Representative of the Secretary-General to the UN Commission on Human Rights, drafted the Guiding Principles on Internal Displacement, which reect and are consistent with international human rights law and international humanitarian law.45 In the absence of one agency charged with the protection of IDPs, an inter-agency cluster approach was taken, led by the Inter-Agency Standing Committee (IASC),46 which allocated leading roles in specic sectors to various agencies. Based upon its expertise, UNHCR was designated the lead agency in the sectors of protection, camp coordination and management, and emergency shelter in situations of internal displacement arising from armed conict.47 UNHCR may have a role in providing protection or assistance to IDPs and may have
strategies to assist their access to livelihoods. Advocacy on behalf of internally displaced persons may present unique challenges, given that the government may be either unable to protect the IDP population or that it may in fact be targeting IDPs and contributing to their displacement. In order to develop an advocacy platform for IDPs access to livelihoods, it is necessary to understand the sensitivity of the situation. Practitioners must identify key arguments for overcoming opposition and appeal to the interests and needs of the government and local stakeholders. Arguments appealing to governments should be centered around facilitating IDPs access to livelihoods as well as reparations for lost assets. Before determining how to address IDPs livelihoods access, it is critical to rst conduct a conict analysis. Identify: Who are the actors in the conict? What are their interests? Is the IDP population safely outside of the conict area? Are they in a camp setting or are they integrated with the non-displaced population? How has conict affected the market? Could the conict potentially affect the implementation of livelihood interventions for IDPs? Practitioners should identify the following in order to develop a strategy for IDPs: Does UNHCR have a role in providing protection or assistance for the IDP population? Do national institutions work with UNHCR regarding internal displacement? Is there a regional or local government ofce that deals with IDP concerns? Determine whether the host country has signed or ratied the 1951 Convention, 1967 Protocol,
20
1969 OAU Convention or the 1984 Cartagena Declaration. Such actions indicate the countrys agreement with their principles and an intention to respect the rights of refugees, which can be used as an advocacy claim on behalf of IDPs access to livelihoods. Look to the Guiding Principles on Internal Displacement, which provide guidelines that reect international humanitarian and human rights law. Is there a government ministry for refugees? If the government has a ministry for refugees, it may be more receptive to dialogue about the needs of IDPs. Is there a donor country or a group of countries that is actively supportive of humanitarian work in the country? Are there specic international donors actively involved in the internal displacement situation? How active are the embassies of these countries in monitoring their countries funding support, and on advocacy and the promotion of rights?
effectiveness to provide assistance and inform refugees and other persons of concern about their rights under the 1951 Convention and standards of international human rights law. Refugees in camps tend to receive assistance from UNHCR and NGOs in a more uniform manner, whereas urban refugees tend to seek out UNHCR or other agencies on an individual basis. However, many may not be able to do this due to vulnerability, distance or a lack of awareness about UNHCRs presencewhich is difcult for UNHCR to manageand also limits the numbers of refugees receiving assistance. Without access to or knowledge of these populations, UNHCR cannot guard against insufcient housing, poverty, food insecurity or cases of detention, refoulement, trafcking, sexual and gender-base violence, discrimination and exploitation in the informal work sector. Given that restrictive livelihood policies for refugees are common and that the potential for a lack of documentation is high, urban refugees are far more likely to be working insecurely in the informal sector, which creates protection issues. In Africa, two in three urban residents get their livelihoods from the informal sector. It is thought to be growing at an annual rate of 7%. In the near future, it is estimated that over 90% of jobs will be part of informal economies.49 Without UNHCR being able to register refugees and, when appropriate, IDPs, or monitor their situation, groups that are isolated or especially vulnerable and that have specic needs will go without services that can provide them with security. Practitioners should determine: What is UNHCRs role in providing protection and assistance to urban refugees? In spite of the challenges in identifying or assisting displaced refugees in urban settings, UNHCR has a responsibility to this population.
C. DISPLACED GROUPS IN URBAN AND NON-CAMP SETTINGS

Particular attention needs to be paid to populations displaced in urban areas as they are often overlooked, exploited and vulnerable. UNHCRs role in providing protection, shelter, food, water and health care assistance is generally very limited when displaced groups are dispersed in urban areas. It is estimated that just 10 percent of the worlds displaced population are in camps, while the other 90 percent are in urban and rural non-camp settings.48 Even in host states where government policies are receptive to refugees, the increasing migration to urban centers reduces UNHCRs
21
UNHCR should proactively engage with urban refugees, to provide services and information, identify their needs, help them to build their capacity for protection and self-reliance, and plan for durable solutions. UNHCR can also work to raise awareness about the plight of refugees in urban areas, to reduce the potential for discrimination, stigma and xenophobia. Can local partnerships be developed among UNHCR, relief agencies and local actors? How can these partnerships develop or build upon existing Livelihood interventions? Determine whether there is a potential for local partnerships that can provide refugees with access to resources and support. Community organizations and local leaders can have a role in linking the community with UNHCR, NGOs and CBOs that are seeking to assist urban refugees. Practitioners should identify opportunities to include urban refugees in existing livelihood programs, such as linking them with micronance institutions, so they can engage in enterprise development (i.e., develop business enterprises to foster the growth of the private sector and contribute to economic recovery). Does the government have a ministry for refugee concerns? Practitioners should approach government agenciessuch as those dealing with immigration, labor and social servicesin order to advocate for refugees right to work, develop policy and coordinate any related programming.
Has the government ratied the 1951 Convention, 1967 Protocol, the 1969 OAU Convention or the 1984 Cartagena Declaration? What policies does the government have related to migrant groups? It is important to understand that in urban settings where refugees and IDPs are integrated with the local population and economic migrants, displaced people may be grouped along with other migrant groupsand therefore may be invisibleand their rights may not be recognized. What has been past practice in response to livelihoods for displaced groups in urban settings? Accessing and providing services to urban displaced groups remain ongoing challenges given that they are commonly hidden populations integrated with or on the margins of the host society. Practitioners should use the guided questions above to develop context-specic strategies for policy change to include the livelihoods of refugees, protect their human rights and identify where inter-agency partnerships may better serve their needs and reduce their vulnerability.
22
CASE STUDY Rights of the Displaced in Malaysia
Malaysia has an estimated one to ve million undocumented workers from the Philippines, Indonesia, Sri Lanka, Nepal, India, Vietnam and Bangladesh. Malaysia is also host to thousands of asylum seekers and refugees, most of whom are from Myanmar. Most of these groups are undocumented and do not have legal status. Further, Malaysia does not distinguish between undocumented workers and refugees, resulting in minimal funding and support for this population. The Womens Refugee Commission reports that women face particular difculty in their livelihood pursuits, and are vulnerable to gender-based violence, arrest, detention and extortion. As economic support to refugees is minimal or non-existent, refugee women have no choice but to risk their safety in order to provide for themselves and their families.50 In 2004, the Malaysian government launched a massive arrest and deportation campaign against undocumented migrants. Refugees in Malaysia responded by creating community centers in Kuala Lumpur that provide information to refugees and keep them in contact with UNHCR.51 Further, the Migration Working Group (MWG)a coalition that comprises many Malaysian NGOs and individuals that work with and conduct targeted advocacy on behalf of refugeesis working to advocate for the alignment of Malaysias migration policies with international humanitarian and human rights standards.52 Malaysia is party to the 1989 Convention on the Rights of the Child (CRC), the 1979 Convention on the Elimination of All Forms of Discrimination Against Women (CEDAW) and the 1956 Supplementary Convention on the Abolition of Slavery, the Slave Trade and Institutions and Practices Similar to Slavery. It must recognize its obligations under these treaties, as well as its obligations under the custom of the 1948 Universal Declaration of Human Rights. Since Malaysia is not a signatory to the 1951 Convention or 1967 Protocol, MWG sought alternative means to hold the government of Malaysia accountable under international law by highlighting past cases that can serve as a precedent for current advocacy. After months of extensive research, MWG produced a Memorandum on Proposed RELA Bill in May 2008in opposition to the governments deportation campaignand started a campaign to permit refugees right to work based on the existing international treaty obligations of the Malaysian government. According to MWG, the Malaysian government is required to: 1) respect the principle of non-refoulement stipulated by customary international law; 2) protect asylum-seeking and refugee children, per Article 22 of the CRC; 3) prevent the trafcking of childrenper Article 35 of the CRCand women, per Article 6 of CEDAW; and 4) address structural problems related to trafcking and bonded labor in line with the Supplementary Convention on the Abolition of Slavery, the Slave Trade and Institutions and Practices Similar to Slavery, which Malaysia has ratied.53 It was hoped that the March 2008 election of many opposition parliamentary memberswho are more supportive of refugee issueswould result in improved rights for refugees in Malaysia, recognizing their refugee status and permitting them to seek livelihoods. At the time of writing, this has yet to happen. In the meantime, MWG is conducting additional advocacy campaigns: providing legal defense for refugees, particularly those who are incarcerated; raising public awareness through participation in UNHCRs annual World Refugee Day; and grassroots and media campaigns to push for recognition of the status of refugees.
23
D. RETURNEES
Upon return to their country of origin, returnees may be subject to discrimination, renewed violence and insecurity, as well as a weakened economy, which may restrict their ability to attain a livelihood. UNHCR has no ofcial responsibility for returnees, as its mandate can only provide them with assistance until they have voluntarily repatriated. Once repatriated, they no longer have such protection because their return implies the restoration of national protection (to obviate the need for international protection) and, through the reintegration process, the ability to maintain sustainable livelihoods, access basic services and fully reintegrate into communities and countries of origin.54 While the post-conict or post-crisis environment may provide opportunities for returnees to obtain livelihoods in local economic recovery efforts and rebuilding of infrastructure, there is often a lack of development and large-scale unemployment. Where possible, advocacy efforts should be made to include returnees in economic development, which can reintegrate and rehabilitate them while also reducing their vulnerability with sustainable self-reliance.
and decrees which are, or may hereafter be, in force relating to refugees.55 Parties to the 1967 Protocol also undertake the same cooperation obligations under Article 2.2.56 In spite of efforts to gain host countries cooperation to implement refugees protection rights in these instruments, there simply is no enforcement mechanism. Walter Klin, Representative of the Secretary-General on the human rights of internally displaced persons, explains: UNHCRs supervisory role and its positive impact on the protection of asylum seekers and refugees is unique, especially when compared to the monitoring mechanisms provided for by other human rights treaties. Unlike the 1951 Convention and 1967 Protocol, these treaties do not have an operational agency with a presence of protection ofcers in a large number of countries working to ensure that these instruments are implemented.57 UNHCR recognizes the difculty many host countries face in implementing protection standards for large numbers of refugees, while already coping with internal economic, structural, social and environmental challenges. Furthermore, bureaucracy, ineffective procedures, a lack of trained ofcials and the geopolitical implications for granting asylum can be a political statement and [therefore] an irritant in inter-state relations.58 On a policy level, there are multiple complexities: the clash of, or inconsistencies between, existing national laws and certain Convention obligations; failure to incorporate the Convention into national law through specic implementation legislation; or implementing legislation which denes not the rights of the individuals but rather the powers vested in refugee ofcials. As to the latter, this means that protection of refugee rights becomes an exercise of powers and discretion by ofcials,
SEEKING THE IMPLEMENTATION OF INTERNATIONAL LAW IN HOST COUNTRIES

While the normative principle of non-refoulement is the only legal obligation states must uphold, states party to the 1951 Convention undertake, in Article 35.2, to cooperate with UNHCR by reporting on (a) the conditions of refugees, (b) the implementation of this Convention, and (c) laws, regulations
24
rather than enforcement of specic rights identied and guaranteed by law. Where the judiciary has an important role in protecting refugee rights, restrictive interpretations can also be an impediment to full implementation.59
CONCLUDING POINTS
Livelihoods aid the long-term protection of the displaced by replacing dependency with selfsufciency that will enable the displaced to guard against vulnerability until and following the attainment of durable solutions. In order to gain a shift in policy practice, a shift in thinking is required about how livelihoods are a critical protection tool for displaced people. While humanitarian aid and international assistance are without question essential, advocates should actively encourage selfreliance strategies to reduce dependence on aid. The benets for host governments of permitting displaced people to have livelihood opportunities are multiple: the economic, social and cultural contributions of displaced people stimulating local economic development leveraging international aid for needed infrastructure alleviating the impacts of protracted refugee situations sustainability of durable solutions, namely repatriation regional stability improved perception of the host countrys human rights leadership in the international community
Host countries should recognize their international obligations not only because of their legal and moral responsibility, but also because they could benet from their implementation. It behooves refugee-hosting countries to uphold these rights and permit the displaced to work so that they can make a contribution to the economy, provide needed goods and services and gain self-sufciency. Livelihoods, as a protection tool, are fundamental to a displaced persons successful transition to a suitable durable solution. It is imperative for advocates to persuade national and local host governments to address the need for displaced people to work and to harmonize national and local policies with their international obligations. Addressing livelihoods protection solutions for urban and non-camp displaced groups is also increasingly important as these populations make up ever larger numbers of the displaced. Supporting sustainable livelihood opportunitiesthrough various interventions, such as vocational training, apprenticeship, job placement and enterprise developmentwill contribute to the successful post-displacement transition to one of the three durable solutions. The advocacy agenda among NGOs must push the support of livelihoods at the global, national and local levels in order to reduce dependency on aid and vulnerability.
25
FURTHER READING & REFERENCES

UNHCR. Framework for Durable Solutions for Refugees and Persons of Concern. Core Group on Durable Solutions, May 2003. www.unhcr.org/ cgi-bin/texis/vtx/refworld/rwmain?page=search&do cid=4124b6a04. . Handbook for Repatriation and Reintegration Activities. 2004. www.unhcr.org/partners/ PARTNERS/411786694.pdf. . Handbook for the Protection of Women and Girls. January 2008. www.unhcr.org/protect/ PROTECTION/47cfae612.html. . States Parties to the 1951 Convention relating to the status of refugees and the 1967 Protocol. October 1, 2008. www.unhcr.org/ cgi-bin/texis/vtx/protect/opendoc.pdf?tbl=PROTE CTION&id=3b73b0d63.
6 7 8
Ibid., p. 13. See note 3, p. 13. Beth Elise Whitaker, Changing opportunities: refugees and host communities in western Tanzania, UNHCR New Issues in Refugee Research, Working Paper No.11 (June 1999), www.unhcr.org. Ibid., p. 9. Ibid., p. 10. Ibid., p. 10. Ibid., p. 15. Themba Lewis and Diana Daskalova, Legal Dimensions of Immigrant Access to Employment in Bulgaria: A Contextual Analysis, South-East Europe Review for Labour and Social Affairs (January 2008): p. 79, www.boeckler.de/pdf/seer_2008_1_lewis_daskalova.pdf. Womens Commission for Refugee Women and Children, We Want to Work: Providing Livelihood Opportunities for Refugees in Thailand (September 2006): p. 4, www.womenscommission.org/pdf/Th_deleg.pdf. Machtelt De Vriese, Refugee Livelihoods: A Review of the Evidence, UNHCR Evaluation and Policy Analysis Unit (February 2006): p. 22, www.reliefweb.int/rw/lib.nsf/db900sid/AMMF6T7GW3/$le/UNHCR-Feb2006.pdf?openelement. International Labour Organization, www.ilo.org. 1944 Declaration of Philadelphia, www.ilo.org/public/english/region/eurpro/ankara/about/ philadelphia.htm. UNHCR, UNHCR Handbook for the Protection of Women and Girls (January 2008): p. 229, www.unhcr.org/protect/PROTECTION/47cfae612.html. Ibid., p. 228. 1951 Convention Relating to the Status of Refugees, www.unhchr.ch/html/menu3/b/o_c_ref.htm. 1967 Protocol Relating to the Status of Refugees, www.unhchr.ch/html/menu3/b/o_p_ref.htm. 1948 Universal Declaration of Human Rights, www.un.org/ Overview/rights.html. 1966 International Covenant on Economic, Social and Cultural Rights, www.unhchr.ch/html/menu3/b/a_cescr. htm. 1979 Convention on the Elimination of All Forms of Discrimination against Women, www.un.org/womenwatch/daw/cedaw. See note 20. See note 22. See note 23.
9 10 11 12 13
14
15
16 17
18
19
NOTES
1 Customary international law represents international norms that are regarded as general practice and a legal obligation because of their repeated usage and widespread ratication by states. UNHCR, Addressing Protracted Refugee Situations in Africa, Informal Consultations, New Approaches and Partnerships for Protection and Solutions in Africa, Geneva (December 14, 2001): p. 2, www.unhcr.org. Karen Jacobsen, The Economic Life of Refugees. (Bloomeld, CT: Kumarian Press, 2005): p. 15. Susan Banki, Refugee Integration in the Intermediate Term: A Study of Nepal, Pakistan, and Kenya, UNHCR New Issues in Refugee Research, Working Paper No. 108 (October 2004): p. 11-14, www.unhcr.org. Ibid., p. 12.
20 21 22 23
24
3 4
25 26 27
26
28 29 30 31 32 33
1989 Convention on the Rights of the Child, www.unhchr.ch/html/menu2/6/crc/treaties/crc.htm. See note 20. See note 22. 1966 International Covenant on Civil and Political Rights, www.unhchr.ch/html/menu3/b/a_ccpr.htm. UNHCR, Basic Facts, www.unhcr.org/basics.html. UNHCR, States Parties to the 1951 Convention relating to the Status of Refugees and the 1967 Protocol (October 1, 2008), www.unhcr.org/cgi-bin/texis/vtx/protect/opendoc.pdf?tbl= PROTECTION&id=3b73b0d63. 1969 OAU Convention on the Specic Aspects of Refugee Problems in Africa, www.africa-union.org/Ofcial_documents/Treaties_%20 Conventions_%20Protocols/Refugee_Convention.pdf. Ibid., Article 1.2. 1984 Cartagena Declaration on Refugees, www.unhcr.org/refworld/publisher,AMERICAS,,,3ae6b 36ec,0.html. Ibid., Section 3.3. Convention and Protocol Relating to the Status of Refugees, www.unhcr.org/protect/3c0762ea4.html. See note 8, p. 2. See note 2. See note 2. Womens Refugee Commission interview with Tania Kaiser, August 2008. See note 3, p. 16. UN Executive Committee of the High Commissioners Programme, UNHCRs Role in Support of an Enhanced Humanitarian Response to Situations of Internal Displacement, Standing Committee (39th meeting) (June 4, 2007): p. 2, www.unhcr.org/refworld/docid/4693775c2.html. Francis Deng, Guiding Principles on Internal Displacement, International Journal of Refugee Law, vol. 10, no. 3, (1998): p. 563. Inter-Agency Standing Committee (IASC), www.humanitarianinfo.org/iasc/content/default.asp. UNHCR, State of the Worlds Refugees: Human Displacement in the New Millennium (Oxford: Oxford University Press, 2006): p. 3, www.unhcr.org/cgi-bin/texis/vtx/template?page=publ& src=static/sowr2006/toceng.htm. 55 56 57 54 49
U.S. Committee for Refugees and Immigrants, World Refugee Survey (2008); and International Displacement Monitoring Centre, Internal Displacement: Global Overview of trends and Developments in 2007 (April 2008). Marc Summers, Africas Young Urbanites: Challenging Realities in a Changing Region, UNICEF/ADAP (November 2008): p. 11. [Citing Kenneth Karl, The Informal Sector, The Courier 178 (Dec. 1999-Jan. 2000): pp. 53-54.] Womens Commission for Refugee Women and Children, Desperate Lives: Burmese Refugee Women Struggle to Make a Living in Malaysia, Field Mission to Kuala Lumpur, Malaysia (May 2008): p. 4, www.womenscommission.org/pdf/mys_rep.pdf. Ibid., p. 3. Migration Malaysia, migrationmalaysia.net. Migration Working Group and JUMP, Malaysia: A Joint Submission by Members of the Migration Working Group (MWG) and the Northern Network for Migrants and Refugees (Jaringan Utara Migrasi dan Pelarian, JUMP) for the 4th Session of the Universal Periodic Review (February 2009), lib.ohchr.org/HRBodies/UPR/ Documents/Session4/MY/MWG_JUMP_MYS_UPR_ S4_2009_MigrationWorkingGroup_theNorthernNetworkforMigrantsandRefugees_JOINT_upr.pdf. UNHCR, Handbook for Repatriation and Reintegration Activities (2004): p. One-2, www.unhcr.org/partners/PARTNERS/411786694.pdf. See note 20. See note 21. Walter Klin, Supervising the 1951 Convention Relating to the Status of Refugees: Article 35 and Beyond (Revision of a background study prepared for UNHCRs 2001 Global Consultation on International Protection) (Cambridge , UK, Cambridge University Press: Cambridge, June 2003): p. 628, www.unhcr.org/publ/ PUBL/419dc0b84.pdf. Ibid., p. 631. Ibid., pp. 630-631.
50
34
51 52 53
35 36
37 38 39 40 41 42 43 44
45
58 59
46 47
48
Based upon composite data pulled from UNHCR, 2007 Global Trends: Refugees, Asylum-seekers, Returnees, Internally Displaced and Stateless Persons (June 2008);
27
Training and Placement Programs

INTRODUCTION
People displaced by conict or natural disasters experience a wide range of obstacles to their individual, social and economic development. In these often-protracted situations, the waste of human capital and the erosion of skills can be substantial without programs to develop marketable skills. Training and placement programs can provide important tools for future livelihoods development and reduce vulnerability to exploitation and need. The training and placement livelihood interventions in this chapter comprise technical and vocational education and training (TVET), apprenticeships and job placement. Technical and vocational education and training programsformal training for occupational skills developmentshould be followed by either apprenticeships or job placement assistance to ensure that participants apply the skills and knowledge gained in training to generate income and gain entrance into the labor market. Apprenticeships, however, can occur independently to provide on-the-job training, and may enable displaced people to enter the labor market while not necessarily providing income at the onset. Job placement programs help to refer and place participants into jobs where they can use the skills they have acquired through TVET or apprenticeships. Training and placement programs have the potential to facilitate long-term, sustainable self-reliance by providing displaced populations with the practical tools needed to rebuild their lives. Well-planned, holistic programs should draw upon local knowledge, capitalize on existing host community resources and utilize the expertise of implementing agencies.
28
TRAINING AND PLACEMENT PROGRAMS
KEY LEARNING POINTS

Prior to implementing a training and placement intervention, an assessment of labor market demand must be conducted that identies labor needs, sectors with employment opportunities and skill sets required to compete for those opportunities. It is critical to include targeted vulnerable groups in the planning and design of programs in order to best address the needs of the community. The inclusion of target groups should be carefully planned so as not to exclude members of the community or cause resentment. Occupational stereotypes related to gender, age and ability should be challenged and not reinforced.
Participants in training and placement programs may require additional program components, such as support services, and employment readiness and life skills training, in order to adequately prepare for entrance into the labor market. The duration of training and apprenticeship programs should be long enough to provide the required degree of competency in the occupational skills learned. Program duration and training objectives should be made very clear to participants from the beginning so they can make a well-informed choice to participate and maintain realistic expectations. Engaging other stakeholderssuch as the private sector and local governmentas partners will help to increase capacity and prevent the duplication of training efforts.
Training in skills such as carpentry, as here in northern Uganda, can lead to jobs while displaced and on return to home communities or in a country of resettlement. SIPA/Rafael Rodriguez-Leal
29
ESSENTIAL ELEMENTS
Denitions An apprenticeship is a form of on-the-job training in which a student is placed with a skilled worker or a tradesperson in his or her workplace to gain practical skills. Upon completion of the program, the student may obtain employment with the mentor, or be placed in a job that requires knowledge of the skills learned. Apprenticeships are also known as industrial training. Employment readiness training is the provision of training for vulnerable groups and others who may require preparation in order to compete in the labor market and employ occupational skills that may have been gained in training and apprenticeship programs. Employment readiness training includes basic education, such as literacy and numeracy; instilling appropriate work behaviors, such as professional demeanor, workplace norms and interview skills; and the development of communication skills that will help participants to follow instruction and work in a team environment. Such training can help participants take on increased responsibility in different work settings and negotiate salaries. Job placement is the direct referral and placement of workers into available jobs. Job placement services should be provided to vocational training and apprenticeship program graduates. Workers can also be directly placed in jobs if they already possess the skills and experience required. Life skills training is an important complementary service for particularly vulnerable groups to prepare them for their participation in society and success in the labor market. Life skills training builds awareness about issues such as HIV/AIDS, other infectious diseases, reproductive health, human rights, environmental sustainability, personal safety, gender-based violence and landmine awareness. Further, it can include teaching on reconciliation, conict resolution and peace education, peace building, social reintegration and civic responsibility. Youth trainees and ex-combatants can benet from such training, which provides alternative coping strategies to use during periods of hardship or conict. Equipping participants with transferable life skills builds their personal and social assets, which can help them endure shocks and secure long-term, sustainable employment in the future. Technical and vocational education and training programs prepare individuals for productive participation in the labor market by providing skills and knowledge needed to enter the workforce. Short-term TVET programs provide the trainee with the minimum skills needed to produce a product or provide a service geared specically towards income generation. This type of training program is benecial for those with limited or no previous educational background but who need to participate in the labor market to provide for their basic needs. Long-term TVET programs may include general educational curricula in addition to the specic skills and knowledge required to practice a trade, such as literacy, numeracy and life skills, thus leaving participants with a well-rounded, transferable skill set. Long-term TVET programs are designed to provide in-depth instruction for a particular trade, such as automotive repair, plumbing and training for nurses aids, and prepare participants for a more highly skilled, technical position.
30
ESSENTIAL ELEMENTS FOR TRAINING AND PLACEMENT PROGRAMS

In order to be successful, TVET, apprenticeship and job placement programs for displaced people must include these essential elements: Maintain Employment as the Primary Objective While occupational training and apprenticeships can be empowering and achieve social objectives, their focus must remain on providing participants with transferable skills for sustainable employment. Interventions should be designed in coordination with local employers to gain appropriate job placement for trainees upon completion of their programs. Training programs should complement theoretical instruction with practical, hands-on application of skills in order to reinforce the main principles of the trade and improve a participants chances of long-term employability. In assessments of training programs, former trainees have expressed some frustration with programs that focus primarily on psychosocial objectives, such as normalization, rehabilitation, trauma and recovery, because these do not lead to increased employment and income generation activities. Programs should aim to include these objectives as secondary to occupational skills training, rather than a primary focus. Attainment of employment should be the overarching goal. Create Demand-driven Skills Training with Strong Links to Market Needs The most effective training and placement programs utilize market assessments. Interventions must create opportunities for income generation that participants did not previously have. Drawing upon the ndings of market assessments and designing course offerings to
address market needs will ensure that the trainees develop skills in trades that are able to absorb them. Programs must produce graduates with marketable skills that will meet labor demands in the communities where they currently live or are likely to live. Identify Innovative and New Markets for Occupations Practitioners should identify new and growing markets when designing training and placement programs for participants. This can reduce market saturation in common trades and may create more jobs with longevity and higher earning potential. Ensure the Involvement of Participants and the Community When choosing which training courses or apprenticeship programs to offer, it is important to survey the interests, existing skills and desires of trainees, and to learn what skills community members perceive as particularly valuable. The participation of program participants, community members, potential trainers and apprenticeship mentors will help to identify and prioritize skill sets that are marketable and therefore desirable for the displaced community. Further, the most effective training and placement programs include a career counseling component. Counseling can ensure that participants have a clear understanding of the occupational options available, job opportunities for each occupation and their earning potential. Communities and participants should be involved in the assessment, design, implementation and evaluation stages of training and placement programs to ensure relevance, sustainability and participant satisfaction. For example, by engaging the community in conducting local market assessments in the assessment phase, community members and participants learn how
31
to gauge and adapt to market changes, conduct cost/benet analyses and work with other relevant stakeholders. Ensure the Transparent Selection of Participants According to their Level of Access to Market, Education and Motivation The transparent selection of participants is fundamental and requires keeping enrollment open to everyone and placing training announcements where everyone will be able to see them. It is also recommended that any training and placement program that assists the displaced population should also attempt to assist the local population. Such inclusion helps build relationships between the two communities. Assisting both communities can facilitate placing displaced people in jobs, as it may ease local employers concerns that the placement program poses threats to the employment needs of the local population. Transparency in the selection process can prevent potential misunderstandings about favoritism and reduce tension within the displaced and local communities. The selection of participants for training programs should be based upon their education and motivation, as well as an appropriate level of access to the market. Participants who are not appropriately placed may be set up for failure. For participants who are marginalized and/or have little market access, programs should make provisions for their specic needs to ensure their access and participation. Ensure Adequate Duration of Training and Apprenticeships to Acquire Competency It is essential that training programs and apprenticeships are sufcient in length to ensure the integration of knowledge and the development of skills. Program length should be conditional on the time it takes to master a skill in order to be competitive in the job
market. Training courses can vary in length from short-term programs of one to three months to long-term programs of up to two years. Programs that are relatively short term (up to three months) may not impart adequate skills and knowledge necessary for viable livelihoods. Yet extended training can inhibit trainees from completing programs, as the time spent in training often prevents income generation. Provide Preparatory Skills Training When necessary, participants should be further prepared for employment through the provision of employment readiness and life skills training, which may help vulnerable groups and individuals with no previous education or training to compete in the labor market. This is particularly important for young members of the community or those who have grown up in conict settings. Such training will provide a strong foundation for learning and can build condence and boost participants prospects for success in the labor market. Build Upon and Develop Partnerships with Existing Initiatives Rather than creating parallel services, whenever possible, existing TVET, apprenticeship and job placement initiatives within the communitywhether locally led or implemented by nongovernmental organizations (NGOs) should be built upon and further capacitated. Coordination with implementing organizations will prevent the duplication of efforts and limit the saturation of the local market with too many people trained in the same professions. Setting up partnerships between local agencies or NGOs and large international organizations can help integrate knowledge and expertise.
32
Support Trainees Interest in Entrepreneurship Trainees interested in starting their own small businesses will require training in small business management, along with a loan or seed grant to cover their start-up costs until they establish themselves in the market. If these small businesses are successful, they could in turn provide apprenticeship opportunities for future trainees in occupations where labor market demand is high. Adopt a Gender-sensitive Approach Interventions that target women need to recognize their often already overwhelming workloads and household responsibilities, and try to avoid imposing further burdens on them. When working with community groups, it is essential to ensure that women have an equal voice. Where possible, women should be supported with access to child care or exible work hours to accommodate their responsibilities. Mainstream Vulnerable Groups in Programming Vulnerable groups must be provided with access and opportunities as participants for training and placement interventions. It is important to provide additional support for these target groups to help increase enrollment and their program success. Conduct Ongoing Monitoring It is essential to monitor training and placement programs to identify any potential negative social or economic impacts, possible changes in the economy that affect market demands and whether there is a need to modify programs for effectiveness. It is important to design a plan early on for ongoing monitoring of program objectives, and the monitoring should occur throughout the implementation phase. (See Implementation sections.)
SPECIAL CONSIDERATIONS FOR TRAINING AND PLACEMENT PROGRAMS

CONSIDERATIONS FOR GROUPS WITH PARTICULAR NEEDS
When targeted toward vulnerable groups, training and placement programs have the potential to play an important role in defying stereotypes about gender, age and ability, and creating a more equitable learning environment and labor market. When developing an intervention, it is important to factor in the needs for particular groups, such as women, youth, older groups, people with disabilities, people living with infectious diseases and ex-combatants. Older people may have physical and mental challenges that cause difculty with mobility, and they may also be caregivers for their grandchildren or orphaned children. Older refugees and internally displaced persons (IDPs) often have decades of work experience and can be an invaluable resource. Displaced people with disabilities often have challenges in nding employment due to societal barriers or problems with access, facilities and transportation. TVET programs for the displaced are often inappropriate for the skills, abilities or needs of people with disabilities, and many do not even target them.1 It is important to provide training and placement programs for occupations suited to the capacities of these groups, as well as transportation or child care assistance, if needed.
33
CASE STUDY Refugees with Disabilities in Pakistan Maintain Livelihoods2
In Peshawar, a local NGO has helped reduced the stigma against refugees with disabilities and proved they can successfully use their economic potential to benet the community. After conducting an assessment of market demand, capacities and available work opportunities, the agency provides vocational training for trades that do not require much mobility, such as tailoring and carpet weaving. Basic education is also provided. Upon completion of the program, graduates are provided with complete toolkits so that they may enter the labor market with less difculty. In a survey, the implementing NGO found that over 90 percent of the trained refugees with disabilities are now earning a decent livelihood.
In order to achieve a successful transition, ex-combatants should be encouraged to attend preparatory training programs as well as employment readiness and life skills programs to build their capacities as civilians. Without this transition, they are unlikely to nd employment upon completion of training and apprenticeship programs. It is important to integrate them into joint skills training programs, which can aid their acceptance in the community and assist with reconciliation. Attention must be also paid to the aptitude of ex-combatants and their ability to learn in a classroom setting. Having returned from conict settings, they may not be accustomed to sitting and learning for hours at a time. Instead, they may require practical teaching through apprenticeships where they can learn by doing, rather than receiving formal instruction. Implementing organizations must prevent the marginalization of ex-combatants and endeavor to raise awareness that their needs may be different from those of other vulnerable groups.
34
CASE STUDY Ex-Combatants in Mozambique Seek Life Skills Training3
In vocational training programs for ex-combatants in Mozambique in the 1990s, the inclusion of specic reintegration skillssuch as peace building, social responsibility and life skills training was deemed essential by the ex-combatants. Yet these topics were lacking in a number of training programs carried out by NGOs. The UN High Commissioner for Refugees (UNHCR) sought to meet this need through vocational skills training by implementing the largest ever post-repatriation assistance programme in which reintegration and rehabilitation activities were undertaken throughout almost the entire country.4
CHALLENGES
Common challenges to implementing training and placement programs may include: low education levels among the displaced population; psychological impacts of conict and displacement on the population; the presence of armed groups or unrest in the region; stigmatization of the displaced population; saturation of local markets with too many people trained in the same occupations; uidity/mobility of students; costs for students to attend training; program dependency on external funding; restrictive labor policies by the host government that prohibit program graduates from working. (See Working with Host Governments chapter for more information.)
UNINTENDED CONSEQUENCES
There may be unintended consequences associated with implementing training and placement programs. When programs are implemented without a full understanding of local market conditions and other available service providers, programming can be undermined by program overlap and labor market saturation. Implementing agencies should coordinate with other service providers and the private sector as much as possible throughout the program cycle.
35
CASE STUDY An Unsuccessful Distribution of Start-up Toolkits5
An Italian NGO in Mozambique provided funding for a skills training program for several hundred ex-combatants with disabilities in agriculture, carpentry, brick-making, automotive and electronics repair, tailoring, shoe-making and clerical work. Upon completion of the training program, each trainee was given a toolkit to enter into self-employment. After the end of the rst course, approximately half of those trained had sold their toolkit, as they had not found employment. The experience shows that a proper labor market assessment is essential.
EXIT OR TRANSITION STRATEGIES

The implementing agency must have a plan to phase out the program. It is essential that training and placement programs not only achieve their goal of obtaining employment for their participants, but ensure program sustainability as well. Implementing partners preparing to phase out programs must ensure that processes are in place to maintain their sustainability. Consider: reducing program dependence on initial funding; evaluating internal policies to ensure that they are in line with program objectives and values, and can be sustained long term; establishing networks that can facilitate a participants job search and job placement even if the program comes to an end; hiring from local populations that will have a long-term interest in program success.
SELECTING A TRADE FOR OCCUPATIONAL SKILLS DEVELOPMENT

The following chart describes potential trades for occupational skills development. Selecting trades according to market needs should be a starting point to designing a program that includes TVET, apprenticeship and/or job placement. Specic information related to the design and implementation of such programs can be found in the respective TVET and apprenticeship sections of this chapter.
36
Skills Training Agriculture
Important to Note Requires adequate arable land and water supply, seeds, fertilizers and tools. Can be easily adopted by a variety of population groups but market may be limited. Requires physical inputs such as hives, smokers, clothing and hats. Training in carpentry may provide preparation for repatriation due to the need for rebuilding postconict. It is often possible to provide on-the-job training experience with relief agencies involved in construction within camps. Post-training practical work experience may be limited by difculty in obtaining wood in camp settings. Requires a large amount of raw materials. Not ideal in arid regions. Goods to be delivered must be in high demand across the community. Requires vehicles (e.g., cars, trucks, bikes) for delivery to remote areas. Requires access to vehicles and qualied instructors, and should result in licensing or certication.
Examples Horticulture, vegetable production
Baking
Bread making
Beekeeping
Honey and beeswax products
Carpentry
School furniture, domestic furniture, building construction
Charcoal Processing Delivery Service
Fuel for cooking food and heating homes Door-to-door delivery of bread
Driving
Providing public transportation to the displaced community; transporting goods to market TV, radio and/or mobile phone repair
Electronics Repair Technicians Hairdressing
Requires inputs such as tools, electronics equipment and skilled instructors. Typically requires only short-term training with an apprenticeship and a small amount of capital, and can be practiced anywhere, although the market is often quickly saturated. Typically ll an important gap in the displaced community. Requires trained medical professionals.
Cutting, braiding, styling, shaving or grooming
Health Care Occupations
Midwifery, nursing and traditional birth attendants
37
Skills Training Masonry
Important to Note Encouraged as preparation for repatriation or return due to potential high demand. Trainees should practice by constructing homes for vulnerable groups without adequate shelter. Masonry may not be appropriate for camps that lack fuel wood for ring bricks. Alternatives include cement-stabilized soil bricks. Only viable if there is a signicant market demand. Training can be expensive due to the need for equipment, tools and highly skilled instructors. Processing natural resources into consumable goods, such as oils, soap or body lotions, that have high demand within the community. Requires land access, water and feed; access to veterinary and animal health services. Typically a small market for plumbing within refugee camps; may contribute to sanitation blocks and improved latrines. Requires tools and skilled instructors. Creates opportunity for work in different ofce environments and contributes to knowledge of business management. Training in customer service, specic industry knowledge and problem-solving skills. Useful in all environments where petty trade takes place. Can be a periodic course or may accompany other skills training. Tailoring is a skill that can be learned by all groups, including older persons and persons with disabilities. The market may be limited due to the availability of cheaper ready-made clothes. Requires a sewing machine for each trainee, which can be costly. Providing high technology services requires inputs secured through the provision of grants or micronance loans.
Examples School construction
Mechanics
Car, motorbike and/or bicycle repair
Natural Resource Processing
Lulu nut products, aromatic oils, herbal medicines
Pastoralism/ Animal Husbandry Plumbing
Milk, eggs, meat products
Relief agency work
Secretarial and Ofce Skills
Typing, word processing, spreadsheets and computer programming
Service Industry Occupations Small Business Skills
Hotel, shop and restaurant workers
Accounting and management, taking inventory, computing costs and prices Relief agency work, e.g., producing school uniforms, sewing mosquito nets, mending and alterations
Tailoring
Technology Service Providers
Internet access, mobile phone calls, charging of mobile phones
38
DESIGNING A TVET PROGRAM THAT INCORPORATES AN APPRENTICEHIP AND/OR JOB PLACEMENT COMPONENT
Practitioners must decide how best to incorporate an apprenticeship and/or job placement component based upon the acquired or existing skill level of participants after completing a TVET program. The programming progression includes: 1) TVET; 2) apprenticeships; and 3) job placement. All TVET programs should be followed by an apprenticeship or job placement component. While there may be cases where extensive TVET is inappropriate due to the nature of the occupation or already-existing skills of participants, most apprenticeships and job placement programs should include some type of preliminary TVET component. Apprenticeships should be for a xed period and result in either a paid position with the apprenticeship mentor or placement in a job elsewhere.
TECHNICAL AND VOCATIONAL EDUCATION AND TRAINING (TVET)

Technical and vocational education and training programs are meant to provide skills and knowledge required for entry into specic occupations. TVET program graduates should be placed into apprenticeships to ensure practical skills application or participants may be directly referred to employment opportunities through job placement assistance.
A. PRELIMINARY STEPS
ASSESSMENTS Market Needs Assessment TVET programs should be designed using up-todate market data and projections of local labor market needs in order to create a strong link between skills training and demand. An assessment requires working closely with other operational organizations in the area, local authorities and the private sector to help identify potential employers. A labor market assessment must: identify existing market assessments in order to coordinate data collection; determine which trades have signicant local labor market demand; assess the absorption capacity of each trade to ensure that there will not be an excess supply of trainees; determine the minimum skills requirements to ensure competency of graduates and facilitate employment; identify occupations that accept female employees;
SPECIFIC TRAINING AND PLACEMENT INTERVENTIONS: TVET, APPRENTICESHIPS AND JOB PLACEMENT
The following sections are divided into TVET, apprenticeships and job placement interventions, and provide guidance for the preliminary steps, design and implementation of these specic interventions. Due to the related nature of the interventions and the linkages between them, there is some overlap in information. Practitioners can draw upon different intervention sections for guidance relevant to their intervention.
39
determine how many qualied trainers, including female trainers and skilled tradespersons, are available and their educational level and teaching experience; assess the availability of training materials/ supplies and whether there are adequate materials and supplies available to provide each trainee with both course materials and potential start-up toolkits; identify opportunities for developing partnerships and linkages with state and private employers and local enterprises, as well as with other international organizations in the area for subsequent apprenticeship and/or job placement components. The Market Assessment Toolkit for Vocational Training Providers and Youth, developed by the Womens Refugee Commission and Columbia Universitys School of International and Public Affairs (SIPA) program, provides a step-by-step guide for practitioners to ensure that vocational training programs for youth are developed with a demand-driven approach. The Toolkit can be found at: www.womenscommission.org/pdf/ug_ysl_ toolkit.pdf Skills Assessment A skills assessment ensures that programs take advantage of existing skills in the community and helps advance these skill sets. The assessment seeks to understand: the existing skills, knowledge and experience of target groups, differentiated by gender, so that these can be utilized and built upon during the training program; the different skill sets available within the community, which can be further developed and upgraded depending on their relevancy to the local market.
Community Data Collection When conducting an assessment of community needs, effort must be made to be participatory and not exclude any groups. It is essential to understand: What important services are lacking in the community? What occupations do men and women prefer? What occupations are dominated by specic genders or groups? What are womens training needs? Which groups are particularly vulnerable? What are their special needs? Which groups have a difcult time accessing services/programs?
IDENTIFYING EXISTING PROGRAMS It is essential to identify existing TVET programs to avoid duplication of efforts at the expense of both the implementing organization and the community. If existing TVET programs do exist, the implementing organization should assess whether supporting these programs is more benecial than creating parallel services. The implementing organization should evaluate existing programs effectiveness, the inclusion of target groups and any gaps in the provision of training. Strengthening existing programs may enhance their quality, reach, diversity of course offerings and effectiveness. If existing initiatives correspond to the demands of the local market and the displaced community, every effort should be made to offer complementary courses, such as small business management and other transferable skills. Determine: Do existing TVET programs cater to the needs and desires of a substantial portion of potential trainees within the displaced population? Are they offering opportunities for the practical application of skills?
40
Are they providing valid, preferably governmentrecognized skills certication? What are the capacity needs of existing training centers? What kind of technical expertise, resources or curriculum development might they need?
be offered as incentives to potential trainers to help improve their capacities. In-service training workshops or outside training opportunities can upgrade trainers capacities and keep their knowledge and skills up to date with current technologies and local market demands. High quality training requires:
B. DESIGN
The design of TVET programs must include the participation of the target population and the local community. The costs of inputs and materials, particularly toolkits for trainees, should be factored into program budgets. SELECTION OF STAFF When selecting the management and teaching staff for TVET programs, priority should be given to displaced groups and local community members, if they have the required skills. All staff members should participate in in-service training sessions and should understand their responsibility to maintain program quality. Trainers need to monitor the program, recognize obstacles and take steps to x them; and be familiar with the local context and the needs of trainees. They should also be equipped to provide information and advice on employment and self-employment possibilities. TVET programs can present opportunities for professional growth for program staff as well as participants. QUALITY OF TRAINING Well-qualied trainers are those with both appropriate teaching skills and sufcient skilled work experience to teach the required skills to trainees. If these teaching prerequisites are not met, then relevant training courses could
periodic review of teaching methods and materials: outdated training materials should not be used and gender stereotypes should be removed; an appropriate balance between practical and theoretical learning; an appropriate ratio of trainers to trainees: this will depend on the trade being taught and the objectives of the program; judicious selection of tools and methods of instruction to ensure practical applicability outside the classroom. The use of advanced and expensive tools is not useful if trainees will not be able to access them following their training.6 TARGETING TRAINING AND CLASS SIZE Differing TVET objectives require different teaching methods and approaches. Programs focusing on economic objectives and dedicated to vocational skills training require carefully chosenand often smallerclass sizes to prevent market saturation. However, integrated programs that include social objectives and that emphasize employment readiness and life skills training, benet from maximizing participation and larger class sizes so training can reach more people and lower the costs per trainee. PROVIDING A SAFE LEARNING ENVIRONMENT It is critical to pay attention to participants safety in TVET programs. Occupational safety
41
precautions must be in place. Further, particular attention should be paid to potential protection issues facing female trainees. The risk of gender-based violence, for example, may be lessened by employing female class assistants, establishing and underscoring the importance of codes of conduct for trainers, providing students with condential complaint procedures, and instituting rigorous follow-up mechanisms.
enroll alongside men in training courses, if culturally appropriate. The experiences of groundbreaking women working in new and non-traditional roles should be publicized, particularly as womens participation in male-dominated trades can yield higher earnings and more opportunities for growth.
CASE STUDY
MAINTAINING GENDER SENSITIVITY To maintain gender sensitivity in the TVET programs, ensure: the recruitment and hiring of female trainers; the curricula and training materials maintain a gender-sensitive perspective; teaching methods, such as group training, simulation exercises, group work and theoretical and practical material, are gender sensitive and gender inclusive; trainers are competent in methods that encourage womens active participation or prevent domination by males; the equal participation, decision-making power and remuneration for male and female trainees; a condential means for feedback and evaluation for participants; the training center is located in an area that is accessible by and safe for women; rules are established regarding behavior between male and female staff and trainees.
Palestinian Women Recommend Gender Sensitivity in Training7
In an assessment of existing vocational training programs in Palestine in 2005, young females expressed dissatisfaction with the lack of attention paid to gender issues in the design and implementation of programs. They report they were often not allowed to attend skills training due to traditional constraints, including culturally ascribed gender roles or early marriage. They spoke of the need for a step-by-step process of engagement, encouragement and support that respects traditional values while educating their households on gender awareness and the advantages of combating gender norms through female empowerment.
UPGRADING SKILLS COURSES Pre-vocational Training Introductory Courses for Female Participants Pre-training courses can be designed to introduce women to traditionally male-dominated occupations. While designing specialized introductory courses for women, it is also important to adopt an integrated approach to encourage women to For those who have undergone previous education or training but need to upgrade their existing skills, refresher courses can be offered. Refresher courses can help alleviate service gaps. For example, displaced communities are often lacking in health care services. By upgrading the skills of nurses,
42
midwives and traditional healers, this essential gap can be narrowed. Refresher courses can also be provided to previously trained trainers or apprenticeship mentors to help increase the provision and improve the quality of services within the displaced communities. In some cases, training program requirements may need to be altered so that participants with insufcient education can meet the requirements to attend government-run programs.
ESTABLISHING PARTNERSHIPS WITH GOVERNMENT EDUCATION PROVIDERS FOR CERTIFICATION It is important to develop partnerships with state ministries not only to build the capacity for continued programming, but also to promote the recognition of occupational skills certication. With government support, training centers can provide appropriate and recognizable certication of trainees qualications. Certication legitimizes a participants acquisition of skills and knowledge, sets qualication standards for hiring individuals for certain occupations and bolsters the condence of trainees as they seek employment. Typically, NGO training program certicates are not ofcially recognized in the way that government-recognized certicates are, but they may still be helpful for participants in gaining employment or attending higher education institutions. Coordination with national institutions may also facilitate the integration of local standards into the training programs and may serve as a useful source of information on employment trends and changes in local markets. In IDP and returnee settings, it may be easier to work with governments to develop skills certication. In refugee contexts, it may be difcult to do this, particularly if there are government restrictions on refugee labor.
MOBILE TRAINING CENTERS CAN HELP REDUCE MARKET SATURATION AND REACH PARTICIPANTS IN REMOTE REGIONS One method of implementing a TVET program is to have mobile training centers. These avoid the problem of saturating the market by moving from area to area and training people in a specic trade until the maximum number of people that the local market can absorb have been trained. Later, the mobile centers return briey for monitoring and follow-up evaluations to assess the impacts and employment status of the graduates.8 Mobile training centers may also be a cost-efcient alternative to setting up a formal training center. However, care must be taken to include the costs of vehicles, fuel, vehicle maintenance and necessary on-site materials into the overall cost-benet analysis. An advantage of the mobile training approach is that attendance is made possible for individuals who could not otherwise participate because of distance, physical disabilities or cultural restrictions.
C. IMPLEMENTATION
ONGOING MONITORING In the case of lengthy TVET programs, the training provided can become irrelevant if there are major social, economic or political changes that signicantly affect the community or the markets. Program staff can assess progress and shortcomings by: conducting focus group discussions with participants; interviewing program participants and trainers; updating market assessment data; conducting small-scale sample studies of households, trainers and/or schools; holding focus discussions with program staff,
43
Refugee women with disabilities from the Democratic Republic of Congo braid hair for an income in Nyarugusu camp, Tanzania. UNHCR/M. Bulow-Olsen
44
trainers and members of the host community to determine what obstacles participants might be facing; reviewing progress reports prepared by training centers and local agencies; monitoring data collected by project eld staff during eld visits.
CASE STUDY The IRCs LEGACY Initiative in Liberia
Following the war in Liberia, the International Rescue Committee (IRC) has worked with vocational training centers, the Liberian government and other relevant TVET stakeholders to prioritize the rehabilitation of the vocational education system and provide access to girls and other marginalized children and youth. The IRCs LEGACY Initiative, a ve-year regional project implemented in Liberia, Sierra Leone, Cte dIvoire and Guinea, is rooted in the principles of inclusion, participation and sustainability, and is based on the premise that quality and accessible education is both essential for the future development of this region and contributes to preventing the return to violence and war.9 In Liberia, 88 percent of youth are unemployed, 68 percent of youth aged 15 to 20 have never seen a classroom, and more than half of the illiteracy rate of Liberia70 percentcomprises youth.10 Further, 75 percent of the technical and vocational education and training infrastructure was destroyed during the conict, with no centralized authority to oversee TVET since the beginning of the conict; female participation in the labor market has decreased; vocational training instructors are aging, resulting in an impending need for replacement instructors; all while the existing skills among youth are not suitable to emerging labor market needs.11 To help overcome these challenges, the LEGACY livelihood intervention provides safe, accessible and relevant education and vocational training that is both market and education driven, helping to prepare youth, and girls in particular, for workforce participation and enterprise development. The LEGACY Initiative is designed with a doublelayered approach, addressing policy reform at the national level and policy implementation at the local level. At the national level, the IRC has facilitated the formation of the TVET National Working Group (NWG), made up of ve government ministries, key local and national NGOs, the Liberia Business Association, and chambers of commerce. It advocates for a coordinated and standardized approach to TVET that will increase access for marginalized youth; remove barriers to girls enrollment; and promote girls participation in TVET trades.12 The priorities of the NWG include re-establishing a national council responsible for TVET; securing funding for TVET institutions and establishing linkages to employment; approving market-driven TVET curricula and mentoring; and ensuring updated teacher training and safe training environments for students.13
45
At the local or direct implementation level, the LEGACY Initiative is engaged in a number of market-driven and youth-friendly interventions, exemplifying the changes that are advocated for at the national level. These interventions include: revision of entry criteria to increase female participation in vocational training centers; youth-led market assessments; curriculum revision, including business skills, life skills and mentoring; trade standards testing; student-centered instruction; assessment, advocacy and policy related to the barriers to female participation in training; engagement of large industries and chambers of commerce; reconstruction and provision of needed equipment; center-based market assessments and technical expertise; establishment of guidelines for fund management and the disbursement of income; the implementation of codes of conduct and safe practices in vocational training centers and on-the-job training sites.14
PROVIDING START-UP KITS UPON GRADUATION In order to support trainees during their search for employment it is usually benecial to provide them with a start-up kit upon graduation. This is a basic set of tools and materials required by their trade.15 The main outcome is that it provides additional motivation for trainees to complete their program and, ultimately, will be critical in whether or not trainees are able to secure employment or generate income following graduation. Below are some methods of providing start-up kits to graduates. To determine an appropriate method, a cost-benet analysis should be performed, as each method incurs the cost of providing toolkits for graduating trainees: A new start-up kit could be offered to each graduate who has demonstrated exemplary capability and effort to learn. Toolkits could be distributed on completion of training, providing an incentive for trainees to successfully complete the course. Sensitivity is essential in view of the risk that subjective selection of recipients may cause discontent. Grading systems should be transparent and objective to ensure fairness. Graduates may be asked to contribute a portion of their future earnings to pay for the kits once employment is attained. This method requires monitoring of the former trainees and can be expensive or impossible in certain internal displacement or impending repatriation contexts. The toolkits used by trainees while they are taking the course could be offered to them on completion of their training. This may reduce the chances of trainees selling the equipment, as the tools will be visibly used. Cooperatives can be formed so that groups can share a toolkit to reduce costs. However, caution is advised, as sharing one toolkit can lead to conict within the group.
46
APPRENTICESHIPS
Apprenticeships may be stand-alone programs that simply place those needing to develop skills with a skilled tradesperson or as a follow-on component of vocational training programs. It is necessary for vocational training programs to include a component that allows participants to apply their skills in real-life settings and successfully transition into the labor market. In order to encourage trade professionals to supervise apprentices, they may be offered a stipend for their mentoring services. It cannot be underscored enough how important it is that practitioners implementing TVET programs with apprenticeship components identify and target appropriate occupations. Apprenticeships meeting real market demand must be selected, as it is sometimes the case that skilled workers earn money or support by training apprentices when they themselves are unable to make a living in their trade. Unless practitioners ensure that training and apprenticeships are suited to realistic labor market needs, participants will ultimately be set up for failure.
whether local businesses have been consulted about market demands; what types of jobs are available; which sectors are capable of absorbing more labor; what types of duties women and vulnerable groupsincluding people with disabilitiesare capable of performing in this sector, taking into consideration potential cultural or physical constraints. Skills Assessment If an apprenticeship is the primary source of training, it is essential to test prospective apprentices skills, as they may have previously worked in the same (or a similar) eld. Some questions to ask include:
A. PRELIMINARY STEPS
ASSESSMENTS Market Linkages Apprenticeships should not take place unless an adequate assessment has been conducted to ensure that there is labor market demand for the apprentices once their training ends. Because international organizations and host governments sometimes carry out market surveys, it is essential to consult these organizations before implementing apprenticeship programs. Questions must identify:
With careful planning, programs can be developed for refugees with disabilities, such as here, in Sierra Leone. Andre Lambertson
47
Do they have adequate skills to successfully apprentice with a mentor? Do they have an interest in the trade in which they will be trained? Needs Assessment For apprenticeship programs, specic questions include: Is there a need for mentors to be the same gender as apprentices? Does the apprentice need any further support to participate in the apprenticeship program? For example, is child care needed for the apprentices dependents during training hours? Or is a transportation allowance needed to reach the apprenticeship site? Do mentors require specic training in order to work with vulnerable apprentices? Are certicates required in order to work? Are certain materials or tools necessary to begin working?
Do mentors need additional training to comprehensively pass on their knowledge to the students? Do mentors have the resources to accommodate apprentices? What kinds of additional support do mentors require? Will mentors benet from additional tools? What training materials will be needed? What type of criteria will be used to accept students into the apprenticeship program? How long will the training last? How many apprentices can the mentor support? How can the mentor and the implementing agency work together to monitor the progress of apprentices? How is progress dened? Will the mentor hire apprentices upon completion of the course?
SELECTING APPRENTICESHIP MENTORS Apprenticeship mentors may be found in small-, medium- and large-scale businesses, in factories and various industries, as well as with individual artisans or tradespersons. Many skilled artisans and tradespersons within a camp setting or established community may not be able to contribute to training and apprenticeship programs because they are involved in their own businesses. However, this potential resource of mentors could be tapped with the right combination of incentives. A particularly effective incentive is to offer courses to mentors to help upgrade their skills in quality control, business administration and nance. This can enhance their effectiveness both as mentors and as business managers. Courses could be offered to help develop the teaching abilities of skilled mentors without previous instruction experience, thus building a pool of mentors in the community.16 It is imperative to select apprenticeship mentors who will ultimately hire their apprentices or link them to the market.
B. DESIGN
WORKING WITH THE PRIVATE SECTOR Practitioners must forge relationships with businesses and sectors where labor can be absorbed. It is essential to encourage businesses to take on apprentices and to ensure success by identifying ways to provide those businesses with support, particularly if they mentor vulnerable apprentices. However, it is important to ensure that the trainee will not be used as a substitute for cheap labor. Determine: Are businesses with labor demand willing to take on apprentices? How can businesses be encouraged to take on apprentices with disabilities?
48
ESTABLISH AGREEMENTS AND POLICIES FOR APPRENTICESHIPS Once partnerships are created, practitioners should outline the rights and responsibilities of mentors, apprentices and program staff. Agreements must specify: the procedures for recruiting, training, evaluating and hiring apprentices; the length of the apprenticeships and a way to monitor the apprentices progress; any potential incentives for mentors, such as additional equipment and tools, a stipend for their training services and the potential to hire a skilled and trained apprentice to assist the mentors business; any potential incentives for apprentices, such as possible stipends, transportation allowances and training certication or certicate of program completion; concrete codes of conduct against harassment, discrimination, abuse, exploitation and genderbased violence that meet international standards.
Due to the one-on-one or small group nature of apprenticeships, critical areas to monitor include: following up with apprentices to ensure that there is protection from sexual harassment, abuse and discrimination in their work environment; ensuring that there are condential complaint procedures established; paying special attention to participants safety and ensuring that there are work-related safety precautions in place; ensuring that the agreements and contracts made between apprentices, mentors and program staff are honored. Apprenticeship programs should have a trial period during which program staff can evaluate whether apprentices are interested in and committed to the program. If a student is not interested enough and is not making an effort, other students should be able to take their place.17 Questions to consider include: Does the apprentice attend regularly? Does the apprentice show interest in his or her work? Is the apprentice able to follow instructions? Is this the right apprenticeship for this participant? Is the apprentice developing competency in the skills?
C. IMPLEMENTATION
ONGOING MONITORING Conduct monitoring to gauge program constraints that may need adjustment. Program staff can assess progress by: holding focus group discussions with apprentices; interviewing apprentices and mentors; holding focus discussions with mentors and members of the host community to determine which obstacles apprentices might be facing; conducting spot checks to monitor the situation in apprenticeship workplaces; reviewing progress reports prepared by mentors.
JOB PLACEMENT INTERVENTIONS

Job placement programs are fundamental for the application of participant skills gained through TVET and apprenticeship programs, although some participants who already possess occupational skills
49
will not require training before job placement. Job placement programs are usually implemented by organizations helping refugees during resettlement and repatriation, and as part of local integration, if policies allow refugees to obtain employment.
Matching and Referring Applicants Programs should identify opportunities for developing partnerships and linkages with state and private employers as well as with other international organizations in the area in order to match qualied applicants with open positions.
A. PRELIMINARY STEPS B. DESIGN

ASSESSMENTS Assessment of Employer Labor Market Needs It is necessary to obtain and analyze labor market data before designing and implementing a job placement program. Consulting displaced individuals is essential because they may be more aware of the local labor market demand. Identify: businesses with job openings networks of local enterprises to provide employment which trades have signicant local labor market demand which occupations will accept women and people with disabilities as applicants Skills Assessment It is essential to assess what types of skills participants possess in order to place them in appropriate jobs. Displaced people may possess skills, experience and language abilities that may be appropriateor provide a strong foundationfor particular jobs and more easily assist their placement. In addition, women, older people and people with disabilities may possess non-monetizedthat is, non-compensatedskills that can help them obtain jobs. Identify: the skills needed to fulll labor market demand in various occupations the different skill sets available within the community
50
WORKING WITH THE PRIVATE SECTOR Practitioners must identify potential employers before implementing a job placement program. Based on labor market demand and consultation with government agencies, the private sector and displaced people, it should become easier to identify potential employers. Partnerships with government agencies, the private sector and organizations providing TVET, employment readiness and life skills training programs should help to facilitate the job placement of participants. Cooperating with different actors will inform practitioners about the types of occupations employers need and the skills they are looking for. Important questions include: What sectors are in need of employees? What types of positions are available? Are employers willing to hire refugees, IDPs and returnees, including women and vulnerable groups? What vocational training centers and other educational facilities for displaced people are in the area? Is it possible to coordinate with vocational training centers in the area or other educational facilities to enhance participants skills and help them become more employable?
It is crucial to engage employers in the job placement process. Employers can participate in recruiting by visiting the job placement program and giving a presentation on what they are looking for. They can also participate by facilitating the training process. Employers engagement can increase mutual trust among themselves and participants, the job placement program and participants, and allow the participants greater insight into the jobs they may be placed in. Engaging with employers requires asking: Who are potential employers? Are there human resources personnel that program staff can reach out to? How can the program connect employers with participants? Can the program invite employers to workshops as guest speakers? How can the program and the employer maintain a relationship before, during and after placement?
RELIEF AGENCY PROJECTS One means of providing practical application of skills is through placing displaced people in positions that assist relief agencies in camp settings. Agencies often run projects in camp settings or displaced communities that may be able to employ displaced people. Relief substitution and incentive work projects can involve construction of infrastructure and community development projects, as well as the production of goods that aid agencies would otherwise buy and distribute to displaced participants. While the labor of displaced people is usually involved in these projects, opportunities to offer coordinated skills training for their eventual employment in the labor market are often missed. Where appropriate, relief agency projects should be identied and incorporated into training programs as sources of practical work experience for trainees. (See the Building In-Camp Economies chapter.)
EVALUATION
C. IMPLEMENTATION
ONGOING MONITORING Program success and failure can be gauged by conducting monitoring that will allow for adjustments in programming. Program staff can assess progress by: holding focus group discussions with participants placed by job placement programs; interviewing program participants and job placement program staff; interviewing employers to assess their satisfaction with the individuals placed with them. Monitoring and evaluation (M&E) of TVET programs, apprenticeships and job placement programs are essential to assessing whether indicators and objectives are met and to gauge program effectiveness in meeting participants needs. Evaluation results enable practitioners to make adjustments to program design and implementation; synthesize the data collected; and document lessons learned. Indicators for measuring participants success should be determined so that implementing organizations can easily monitor and track the progress of programs. Participation of program participants is essential in M&E. To enhance the gender, age and ability sensitivity of the indicators, it is important to differentiate or separate the data between women and men,
51
youth and adults, and vulnerable groups and less vulnerable groups. Practitioners should determine: Do trainees have good attendance records? Are participants punctual? How useful was the material taught in the TVET or apprenticeship program? Did the training courses reect current trends and additional skills needed? Do the trainees require further training in order to be competent in the trade? Can participants apply their acquired skills? Are they regularly using their skills? Do employers feel participants have the appropriate skills for the position? Do employers feel participants are meeting the demands of the position? Would employers hire graduates of this training program again? What are participants retention and completion rates? Have program graduates secured employment? If so, are their jobs directly related to their skills training? Is their employment sustainable? Is there sufcient demand for their skills in the market? Can the local economy afford to keep workers employed? What are the reasons for short-term or limited employment? Is the occupation no longer in demand? Do graduates lack the required skills? Has there been an increase in the households income level? Are program graduates earning adequate income to cover their basic needs? Has there been an increase in the nutritional intake and food security within the household? Has the household been able to increase its savings or accumulate assets?
Were women and vulnerable groups included in the program? How did the intervention affect community relations and the local labor market? What is the overall perception of the intervention, according to participants? Are they satised with the program? Were there any unintended consequences? Can they be remedied? It is critical that the evaluation of training and placement programs includes an assessment of their exibility and responsiveness to changes in the demands and requirements of local markets, especially to local shocks and environmental changes. The evaluation should verify that trainees are receiving the most current training to ensure employment. The impact assessment of the training program is extremely valuable for the design and implementation of future programs and modications of current programs.
52
FURTHER READING AND REFERENCES

Forced Migration Review. Sustainable livelihoods: seeds of success? Issue 20, May 2004. www.fmreview.org/FMRpdfs/FMR20/FMR20full. pdf. ILO. Emergency Public Employment Services. ILO Factsheet. May 2003. www.ilo.org/public/english/employment/crisis/ download/factsheet7.pdf. . Gender Guidelines for Employment and Skills Training in Conict-affected Countries. ILO Action Programme on Skills and Entrepreneurship Training for Countries Emerging from Armed Conict, 1998. www.ilo.org/public/english/employment/skills/ training/publ/pub21.htm. Jaspars, Susanne, Sorcha OCallaghan and Elizabeth Stites. Linking Livelihoods and Protection: A Preliminary Analysis Based on a Review of the Literature and Agency Practice. Humanitarian Policy Group, Overseas Development Institute, HPG Working Paper, December 2007. https://wikis.uit.tufts.edu/ conuence/display/FIC/Linking+Livelihoods+and+ Protection+--+A+preliminary+analysis+based+on+a +review+of+the+literature+and+agency+practice. UNESCO IIEP. Vocational education and training. Section 5: Chapter 26, in Guidebook for Planning Education in Emergencies and Reconstruction. UNESCO, International Institute for Educational Planning, 2006. www.unesco.org/iiep/eng/ focus/emergency/guidebook.htm.
UNESCO-UNEVOC. Education for Livelihoods and Civic Participation in Post-Conict Countries: Conceptualizing a Holistic Approach to TVET Planning and Programming in Sub-Saharan Africa. UNESCO-UNEVOC Discussion Paper Series No.3, 2007. http://unevoc.unesco.org/pubsdir. php?akt=ft&q=education+for+livelihoods. Womens Commission for Refugee Women and Children and the School for International and Public Affairs, Columbia University. Market Assessment Toolkit for Vocational Training Providers and Youth: Linking Vocational Training Programs to Market Opportunities. October 2008. www.womenscommission.org/pdf/ug_ysl_toolkit.pdf.
NOTES
1 Womens Commission for Refugee Women and Children, Disabilities among Refugees and Conict-affected Populations (June 2008), pp. 26-28, www.womenscommission.org/ pdf/disab_fulll_report.pdf. See Rabia Ali, Vulnerable Afghans cast off crutches of dependency, UNHCR News Stories (September 28, 2006), www.unhcr.org/cgi-bin/texis/vtx/ print?tbl=NEWS&id=451bcac44. Stuart Maslen, The Reintegration of War-affected Youth: The Experience of Mozambique, ILO Action Programme on Skills and Entrepreneurship Training for Countries Emerging from Armed Conict (1997), www.ilo.org/ public/english/employment/crisis/download/maslen.pdf. Ibid., p. 26. Ibid., p. 9. See ILO, Gender Guidelines for Employment and Skills Training in Conict-affected Countries (1998), www.reliefweb.int/rw/lib.nsf/db900SID/LGEL5MTC5Y?OpenDocument. Education Development Center, EQUIP3/Youth Trust Consortium, Building a New Generation of Leaders in the West Bank and Gaza: Findings and Potential Interventions (2005), p. 32, popline.org/docs/1681/300601.html. Paulo Barcia and Eugenia Date-Bah, Skills training challenges in post-conict contexts, In Eugenia
4 5 6
53
Date-Bah, ed., Jobs after War: A Critical Challenge in the Peace and Reconstruction Puzzle (ILO: Geneva, 2003), pp. 211-224. 9 10 International Rescue Committee, LEGACY: Platform to Peace, LEGACY Annual Report 2008 (2008), p. 1. Radha Rajkotia, Youth and Livelihoods: How and why IRC is investing in youth as assets for stability and development (presentation by the International Rescue Committee, at the Womens Refugee Commission Livelihoods Workshop, Bellagio, Italy, November 19, 2008). Ibid. Ibid. Ibid. Ibid. See Eldrid Midttun and Toril Skjetne, Youth Education Pack: An Investment in the Future, Forced Migration Review, Issue 20 (May 2004), p. 50, www.fmreview.org/ FMRpdfs/FMR20/FMR20nrc.pdf. Erik Lyby, Vocational Training for Refugees: A Case Study from Tanzania, In Learning for a Future: Refugee Education in Developing Countries, UNHCR Evaluation and Policy Analysis Unit (January 2002), p. 229, www.unhcr.org/cgi-bin/texis/vtx/ template?page=publ&src=static/epau/learningtoc.htm. UNESCO, Vocational Education and Training, Chapter 26 in Guidebook for Planning Education in Emergencies and Reconstruction, International Institute for Educational Planning (IIEP) (2006), p. 8, www.iiep.unesco.org/index.php?id=403
11 12 13 14 15
16
17
54
55
For-Work Programming:
Cash-for-Work and Food-for-Work
INTRODUCTION
This chapter addresses for-work Livelihood interventions, including both cash-for-work (CFW) and food-for-work (FFW). For-work interventions have long been a transitional strategy utilized during the emergency response phase as an initial livelihoods program. For-work programs generally address reconstruction, public works and other recovery needs in conict-affected, post-conict and post-natural disaster areas. These projects are intended to provide temporary and short-term employment options to displaced populations, while also building and restoring infrastructure and community assets that will strengthen and provide stability to the community. For-work projects additionally aim to enable refugees, internally displaced persons (IDPs) and returnees to shift from dependence on humanitarian aid to economic self-sufciency and food security.
56
FOR-WORK PROGRAMMING
KEY LEARNING POINTS

Carefully select the most vulnerable participants for for-work projects. Selection should be unbiased and include all segments of the displaced population to avoid social tension. It is important not to favor an ethnic or religious group, or one party to a conict. Inadvertent bias could compromise both program and community stability. For-work programs are unique and cannot be duplicated from one location to another. The local community should be involved in planning and administering the for-work programs. Local markets should be capable of absorbing the increased demand that will be caused by cash distribution for cash-for-work projects without encountering shortages or ination. Ensure that the rapid infusion of cash or increased demand for goods will not fuel conict within displaced communities or with their host community, or exacerbate existing armed conicts. Sensitivity to the host community will ensure that projects are mutually benecial. Programs should reect long-term labor market needs. Participants should be developing skills that will be in continued demand in their community or in places of return or resettlement post-displacement. Proper sensitivity must be given to gender, age and ability when selecting and working with participants.
Craft projects are appropriate only if there are established and continuing markets for the products. IRC/Peter Biro
57
ESSENTIAL ELEMENTS
Denitions For-work refers to programs that offer short-term employment to community members involved in public works projects in order to build community assets and infrastructure. The entire community benets from the projects, while the direct program participants receive temporary employment. Cash-for-work (CFW) projects pay participants in cash for short-term temporary employment, usually lasting no more than six months.1 Cash-for-work is often employed in infrastructure reconstruction or other similar temporary jobs, such as harvesting, where laborers are paid in short-term intervals. The overall goal is to generate provisional employment rapidly and inject cash into the community.2 In addition to allowing participants to meet immediate livelihoods needs and move towards self-sufciency, CFW boosts local markets with positive multiplier effects from the rapid infusion of cash. Community contracting is important to for-work projects, which work closely with the displaced community. Such contracting is an agreement between a community-based organization and an external funding or support agency to implement a development project for the benet of the community.3 Food-for-work (FFW) refers to short-term temporary employment, where workers are compensated in food, vouchers or, occasionally, in-kind goodsgoods or services provided in lieu of cash. Participants can also sell or barter unneeded food for cash or goods. Food-for-work offers an alternative to CFW where markets cannot accommodate increased consumer demand, or in cases where the security situation, donor restrictions or government regulations make cash distribution too risky. Self-help activities occur in the context of foodfor-work programs, where workers are offered an incentive that can be entirely in kind. 4 In this case, food is only a bonus. The actual work is voluntary and therefore the limitations concerning food as payment do not apply.5 Such self-help activities directly benet laborers (e.g., irrigation works undertaken by the farmers who will later utilize them).6
58
UTILIZING FOR-WORK PROJECTS IN LIVELIHOODS PROGRAMMING

How do for-work projects contribute to the livelihoods of participants? Transitioning from Dependence on Aid to Self-Sufciency Cash-for-work provides participants with income that they can use to purchase food or other necessary goods, pay for health and education services, pay off debts, buy assets such as livestock and/or expand microenterprises to generate income. Paying off debts and increasing physical and personal assets allow households more security. In addition, food-for-work allows individuals and households to supplement their food supply and increase and/or vary the nutrition they and their households are receiving. Asset- and Infrastructure-Building Projects Support the Whole Community Projects should be chosen by the community and provide value for the whole community. Many potential projects specically provide livelihoods support, such as weaving shing nets, clearing and rehabilitating agricultural land or clearing roads to allow better access to markets. Cash Injections Can Revitalize Markets Cash-for-work boosts the amount of cash in circulation within a community. In areas where conict, disaster or displacement have diminished market capacity, an injection of cash may revitalize markets by increasing demand. This improves the livelihoods of local traders and those on the supply chain and improves market access for community members who are not participants. The revitalization of markets is only achieved through careful market analysis to ensure that cash injections do not cause ination, which would harm community members and reduce the effectiveness of CFW wages.
CONTEXTS FOR FOR-WORK PROGRAMS

For-work programs are well suited to a variety of recovery situations, but are particularly effective for: Post-natural Disaster or Slow-onset Natural Disasters, such as Droughts or Harsh Winters For-work programs can provide support during harsh seasons that tax livestock, harm crops, reduce employment opportunities and increase vulnerability. By providing supplementary income during these times, for-work prevents negative coping strategies such as selling household assets or turning to illegal or dangerous employment. Cash-for-work programs can also be implemented prior to a difcult season, providing income that can be saved or used to buy assets for protection and food security when the harsh season returns. Post-conict and Conict-affected Settings In areas affected by conict, for-work programs can transition refugees, IDPs and returnees from dependence on aid to self-reliance and reduce their vulnerability. However, programmers need to be aware of the potential for these increased resources to contribute to the conict economy or further provoke social tensions. Returnee and Rebuilding Contexts For-work programs provide short-term employment, which can be used as an incentive for refugees or IDPs to return to their communities while local employers recover. Work projects are well suited to clearing debris and reconstructing infrastructureactivities that help to rebuild communities damaged by a quick-onset disaster or prolonged conict. Cash-for-work provides injections of cash that can help restart and expand local markets.
59
Improving Relations between Displaced and Host Communities For-work programs in refugee or IDP camp settings offer opportunities to build ties between the displaced and host communities. Projects may improve upon host community infrastructuresuch as roads or water suppliesthat will benet the camp as well as the host community. Positive relationships can be established if refugees and/or IDPs and members of the host community work side by side on projects.
CASE STUDY Cash-for-Work Accelerates the Returnee Process7
Cash-for-work programs following the 2004 tsunami offered jobs in devastated communities before local businesses had recovered enough to provide employment. Participants were able to work rebuilding their own communities and were involved in a variety of projects, including: removing and burying the deceased; cleaning and repairing drains; cleaning water systems; cleaning and rebuilding latrines and other public facilities; reconstructing bridges; and cleaning, rehabilitating or constructing houses and shelters. Projects that involved clearing agricultural land and roads allowed important industries to resume. Building temporary or semi-permanent shelters allowed more people to return to affected areas. Because cash programs can be implemented quickly, the implementing agency was able to start CFW programming within two weeks of the disaster. By quickly providing incentives for people to return home and work on recovery efforts, CFW minimized the time participants spent as IDPs. The cash payments, which were initially set above pre-disaster rates, encouraged inland traders unaffected by the disaster to resume trade in the CFW areas. Ninety-one percent of participants in these CFW operations reported that CFW facilitated their return home.
CASE STUDY Cash-for-Work Protects Against a Harsh Winter8
A cash-for-work program that began in Afghanistan in 2003 targeted participants whose livelihoods had suffered because of drought, which had lowered food production, harmed livestock and increased debt as well as migration. With winter approaching, participants were likely to grow even more vulnerable and resort to negative coping strategies or migrate to more temperate climates at great cost. Cash-for-work was implemented to provide 70 working days to nearly 7,000 participants, who worked to build water reservoirs and protection walls, plant trees and collect fodder for livestock. These projects helped the entire community endure seasonal shocks, and participants were able to save their wages to buy food throughout the winter. Some also purchased clothes and medicine or paid for health care or education. Vulnerable groups did not have to migrate or sell off assets.
60
ESSENTIAL ELEMENTS OF FOR-WORK PROGRAMS

Programs must: Be Holistic Cash-for-work and food-for-work interventions work best when participants and communities receive additional types of support. Because the programs require labor, some of the most vulnerable community members who are unable to work may be excluded. As a result, food aid has often been packaged along with for-work activities. Food aid also enables cash recipients to focus on paying off debts and investing in the future. Savings programs are extremely effective alongside CFW, allowing participants to save for the future, pool their money into community savings collectives or earn credit and take out low-interest loans. One of the most effective ways CFW transitions participants to independence is by providing capital to start up businesses. The provision of business development services can increase participants chance of success in becoming self-sufcient. Be Community-run Community involvement in selecting projects and participants ensures relevance and buy-in. By working with community groups, the implementing agency can ensure that projects will be useful and that the participants selected are those most in need. Furthermore, ongoing community participation means that newly produced or refurbished community assets and infrastructure are more likely to be maintained after the program ceases. Finally, for-work interventions work best when their goals are claried between the agency and the community from the start.
Have an Exit Strategy From the beginning, the implementing agency must have a plan to phase out the program. For-work is not meant to be a permanent or even a semi-permanent intervention, and it can be damaging to participants livelihoods if their only source of income ends abruptly. Be Gender-aware and Address Gender-based Violence (GBV) Female participants may be overtaxed by working on for-work projects in addition to their child care and household duties. For-work projects that are time-exible or home-based can help relieve the additional burden that for-work duties may place on women. An additional concern is that cash can sometimes cause tensions within a household or community. The existing balance of power may be disrupted by new workloads or new income. Ongoing monitoring should assess levels of violence within households and whether women have control over or input into spending. Womens preferences on the type of payment must be solicited because they may wish to receive some of the payment in the form of food or vouchers. When working with community groups, it is essential to ensure that women have an equal voice in planning projects and selecting participants. Be Age-aware Youth, particularly young heads of household, may want to be involved in for-work programming. The agency should establish a minimum age for program participation that respects existing regulations and protects young workers. Be Ability-aware Often among the most vulnerable displaced people are those who are older, or who have illnesses or disabilities. Because some for-work activities are too physically intensive for these
61
groups, for-work may not be the best way to target them for livelihoods development. However, there are many ways to involve these groups, either by designing exible, less physical activities or by designating special tasks geared to members of these groups. Be Adaptive and Responsive During both the planning and implementation phases, for-work interventions must be tailored to local community needs and designed to either boost, or at least not interfere with, labor and goods markets. Ongoing evaluations to monitor the projects effect on labor markets and local businesses, as well as prices in the food and goods markets, are crucial. Household and community dynamics must also be monitored. If the intervention is found to be negatively affecting markets or the safety of women, the implementing agency should be prepared to suspend or modify the program.
PRELIMINARY STEPS
ASSESSMENT
Before designing a for-work project, it is necessary to gather information about potential project sites, local needs, participant preferences and concerns, markets and security. The results of the assessment will dictate whether for-work is an appropriate intervention and will indicate where the project can be most successful. (See Flow Chart for Determining the Appropriateness of Cash or Food Programs in the Design section of this chapter.) The following chart explores key questions to ask during a comprehensive assessment and recommends research methods for exploring each issue.
62
ASSESSMENT GUIDELINES
Issue
Regulations and Restrictions
Goal of Inquiry
Determine whether the cash-for-work and if there are extra costs to be factored into deciding the payment type. Gather important knowledge to avoid violating host government laws or policies.
Key Questions
What are the local tax policies? Would paying cash jeopardize the standing of the operating agency in the eyes of the national government? Is the operating agency under any restrictions from donors regarding cash transfers? Are displaced people permitted to work? Are there restrictions on the type of work they can do or the location of their work?
Research Methods
Examination of government regulations. Examination of donor restrictions.
Needs
Determine the degree of damage and needs in the affected area. Determine whether For-Work activities may take away from independent livelihoods recovery. Show what coping mechanisms already exist and how effective they have been. Identify whether cash distribution is appropriate, or if food and/or vouchers should be used. Identify whether participants prefer cash or in-kind payment.
What was the impact of the emergency on food and income sources and other assets used for livelihoods? Are people able to meet their basic needs with the food and income currently available? Are they able to recover livelihoods and assets? What strategies are people using to cope with food and income insecurity, and what do these strategies do for their livelihoods and dignity? Are existing livelihoods strategies diversied? What are people likely to spend cash on if they get it? What kinds of goods do they need? Does the population prefer cash, in-kind payment or a combination?
Interviews with a wide range of actors, including government ofcials, community leaders, nongovernmental organizations (NGOs), the private sector and a diverse array of community members. Surveys of literature and statistics from the government and NGOs in the eld.
63
Issue
Household Relations
Goal of Inquiry
Understand the existing power balance and gender dynamics within a household. Determine whether women will have control of the income they earn. Determine whether cash or For-Work programs might put women at risk for increased gender-based violence or have other harmful effects. Determine womens preferences for payment type. Determine whether more time-exible For-Work projects should be considered, whether child care programs might be helpful and how to alleviate the burden of additional work. Determine the availability of or lack of access to household assets.
Key Questions
What are the spending priorities of men and women? Who controls spending within the household? What will an inow of cash do to household dynamics? Is there a risk of gender-based violence? What kind of aid do women prefer, and why? What is the division of labor within the household? How much time must women spend on household duties (child care, cooking, cleaning)? What household assets would contribute to the households well-being (savings, tools, livestock)?
Research Methods
Separate interviews or focus groups with men and women from different social, ethnic, political and socioeconomic groups.
64
Issue
Community Dynamics
Goal of Inquiry
Determine the appropriateness of a potential program location. Identify problems with potential targeting strategies for participant groups. Measure local support for program. Determine whether cash might fuel a conict.
Key Questions
What will an inow of cash do to social, religious or political tensions in the community? Would targeting one group over others exacerbate existing tensions? Would it help raise the status of a vulnerable sector of the population? Would a project that involves members of multiple groups in conict with each other increase problems among the groups? Or could the project be used as a conict resolution strategy? In refugee camp situations, would a For-Work program that targets refugees as well as vulnerable members of the host community have a positive impact on refugee-host relations? Would a program with refugee participants that built host community assets and infrastructure be well received by refugee participants and the host community? What local committees or community groups exist, and does the community trust them? Are they representative? Do they include women? Can they help organize and run a program? How reliable are leaders and government ofcials, as viewed by the population? Do leaders and government ofcials say they will support the program? Is there a recent or ongoing armed conict or arms trade that potential participants are involved in? Could cash be used to buy weapons?
Research Methods
Separate interviews or focus groups with men and women from different social, ethnic, political and socioeconomic groups. Interviews with other NGOs or community-based organizations (CBOs) in the area. Discussions with local ofcials and leaders.
65
Issue
Food/Goods Availability
Goal of Inquiry
Determine whether cash will increase food security or if food aid is needed. Identify obstacles that may hinder food access. Identify other programs that might address food security, freeing CFW up to target long-term livelihoods security. Gather background knowledge to increase familiarity with the community and the likelihood of program success.
Key Questions
Are food and other desired goods available nationally and locally in sufcient quantity, quality and variety? What does the supply line look like? Will seasonal uctuations and harvest cycles impact food availability? Do government policies or other factors affect food availability? Are there other programs in the area that provide food? If so: Whom do they target? Would other food distribution programs interfere with or complement a For-Work initiative? What previous programs or projects have occurred in the area, and how successful were they? What were the reasons for successes and failures? What lessons were learned?
Research Methods
Interviews and focus groups with producers. Examination of national and local statistics and agricultural calendars. Review of government policies on agriculture.
66
Issue
Food/Goods Markets and Prices
Goal of Inquiry
Determine whether markets are accessible, stocked and affordable to see if cash-forwork can address food needs or if food-for-work may be more effective than cash assistance. Determine whether cash distribution can be efcient and effective or if it might be harmful to the community. Determine whether supply will meet increased demand so that cash distribution can be effective. Determine whether cash-forwork would stimulate market growth, helping the community as a whole. Determine whether cash payments will retain their value as savings. Determine whether food transfers from outside markets are appropriate.
Key Questions
Determine whether markets are operating and accessible: Where are they? How much time and money must be spent on travel? How frequent is transportation? Is there freedom of movement for refugees to access markets? Do seasonality, climate or conict cause market shutdowns? Do markets have sufcient quantities of items at reasonable prices? Are there restrictions on the movement of goods? Is the market competitive? Are there enough suppliers relative to buyers to keep prices stabilized? Or can sellers manipulate prices when cash-for-work creates extra demand? Price increases will harm community members who are not participants. What are the risks that an injection of cash would cause ination? Is the market integrated so that goods can move from areas of surplus to decit in order to stabilize prices and supply? Are roads able to accommodate transportation? Are there reliable means of communication between different markets? Would an injection of cash create enough of a demand to stimulate or stabilize a market? Is currency devaluation or uctuation likely? Would transfers of food or goods undermine local markets or producers?
Research Methods
Interviews and focus groups with traders along the supply line. Price monitoring in key markets, including the local and comparable markets. Analysis of the volume of cash being provided by the project compared with other inows, such as remittances.
67
Issue
Labor Market and Wages
Goal of Inquiry
Identify a wage that will not undermine local businesses by drawing laborers away. The wage must also target only the most vulnerable in the community, so the wage must not be so high as to attract everyone in the community. Avoid exploitative wages.
Key Questions
What is the average wage in the area for various types of labor? What is the lowest wage that more vulnerable populations are being paid? What is the minimum wage (government-mandated or negotiated by a labor group)? What is the cost of living?
Research Methods
Interviews and focus groups with employers. Survey of local and national government and NGO data on labor markets, pay rates and the cost of living.
68
Issue
Security and Delivery Mechanisms
Goal of Inquiry
Identify methods and costs of transferring cash.
Key Questions
What are the options for distributing cash? Banking systems, remittance delivery systems and other informal nancial systems? Can the post ofce
Research Methods
Inquiries with banks, post ofces and remittance transfer institutions. Interviews with potential participants about local preferences for disbursement, including issues of transportation for cash or in-kind payments. Interviews or focus groups about local perceptions of security, corruption and the safety of transporting and storing cash or in-kind payments, as well as spending cash or vouchers. Analysis of the risks to the agency of moving and distributing cash. Assess existing and potential levels of corruption for both cash and in-kind payments via interviews with various groups.
Identify risks and costs of cash transfer methods. Identify methods, risks and costs of transferring food and goods. Identify methods, risks and costs of running a voucher program. Identify issues with cash, food and voucher distribution to help determine what type of disbursement method would be best for participants. Determine the risk of corruption and diversion.
distribute cash? How do people normally receive and transfer cash? What fees do the organizations charge? What are the risks and costs associated with the implementing agency handling the delivery? What are the logistics of storing and transferring food and/or goods? How expensive would this be? Is a voucher program possible? Are merchants willing to participate, and do they have the capacity? Can a voucher system foster competition, or can prices be set with merchants? What are the risks to the participants if they are known to be carrying or storing cash? Are bank accounts or savings programs available? What are the risks to participants if they are known to be receiving food and/ or goods? How easily can participants transport and store food and/or goods? How far are transfer mechanisms from participants? How available is transportation? Are there methods that give women more or less control over the payment, such as bank accounts? What are the risks of cash or goods being seized or diverted by community leaders or members or project staff? What accountability safeguards might minimize these risks?
69
WHEN IS FOR-WORK A SUITABLE LIVELIHOODS INTERVENTION?

When is cash-for-work suitable? The International Labour Organization (ILO) recommends implementing CFW: when there is an urgent need to inject cash into a community and provide a source of rapid income in emergency situations; when undertaking public and community works, infrastructure reconstruction and other recovery interventions.9 Practitioners should note that there may be both efciencies and costs associated with using cash rather than food remuneration: Cash transfers have the potential to be more cost-efcient than in-kind distribution, because they avoid the costs of procurement, transport and storage of bulky commodities associated with in-kind assistance. However, cash transfers are not always more cost-efcient as this depends on the price of goods that people can purchase in local markets compared with the costs of aid agency procurement and transport.10 When is food-for-work suitable? ILO recommends implementing food-for-work when: administrative obstacles impede or delay cash payments; food is scarce and wages low, or market mechanisms are inappropriate; emergency drought or famine situations exist; the emergency state is not completely critical and there is a lack of self-sufciency in food production. (In such situations, FFW can be used as the delivery mechanism of food aid, particularly for infrastructure rehabilitation, or support linked to food production and market access.)11
ILO recommends the use of self-help projects when there is no interest in receiving food as payment, food resources can be used as an incentive to encourage workers to undertake self-help projects.12 Such projects, which receive no compensation, must appeal to workers because the work will benet their community. ILO states, A self-help activity must be of direct interest to the worker and be regarded as such, for example, the building of a school that the workers child can attend or sections of road that may provide access to and from the displaced community.13 Before implementing a for-work program, ensure that: Potential work projects can: provide long-term benet to the community; provide work opportunities that match the skills of potential participants; be manageabledoes the implementing agency possess the administrative and technical capacity to handle the project? If not, are partner agencies, consultants or other sources of expertise available? Communities chosen for projects should: support the project aims, while also managing the assets and infrastructure that will be built; accept a program that works with vulnerable participants. Cash programming presents several additional requirements: The community must have a cash-based economy. Local markets must be functional, so that cash can be spent on food, goods and household assets, such as livestock or agricultural inputs. Local markets should be capable of absorbing the increased demand that will be caused by cash
70
distribution without encountering shortages or generating ination.
When is food-for-work unsuitable? ILO warns against FFW programming in the following circumstances: When prices are stable and workers can buy their food. Once emergency situations requiring FFW cease or food is no longer scarce. If the project cannot sustain the logistical and administrative capabilities required for FFW. When the project requires continuous community involvement, for example, use FFW for road building (short-term activity) but not for road maintenance (long-term commitment). Food as an incentive might be unsuccessful in areas with a highly developed labour culture.14
WHEN IS FOR-WORK UNSUITABLE?

For-work is meant to provide temporary relief and should be part of a transition to more sustainable economic development. For-work programs should not be used to pay for long-term undertakings, such as road maintenance, teacher salaries or permanent employee salaries, such as those for civil servants. These activities become unsustainable if they rely on the funds of an external agency, which are likely to be short term. The projects should benet the community and have a clear point of completion. For-work is meant to impact many participants over shorter periods of time, helping these participants in the transition to self-sufciency. It is not designed to support fewer individuals over a longer period of time. For-work programs cannot provide employment for a large segment of the population without a realistic path towards continued employment. In the long term, for-work programs are not sustainable, and the end of the programs, without a clear transition strategy, will cause an unmanageable increase in unemployment and vulnerability. When is cash-for-work unsuitable? It is important to consider whether cash might fuel a conict. If there is a recent or ongoing conict in the area, the assessment should examine whether cash might be used to buy arms. Programmers should assess whether protagonists from both sides of a conict can work together and whether a program targeting participants from only one side of the conict could exacerbate hostilities.
DESIGN
SELECTING A COMMUNITY
The following factors should be considered when selecting a community for a for-work project: Communities should have prospective projects that are both viable (within the scope of the agencys and participants capacities) and valuable (useful to the community). Local government ofcials should support the project. There must be a representative community group that supports the projects activities and objectives, or there should be potential for the implementing agency to facilitate the set-up of a community group that can oversee the project. There should not be other NGO- or government-run programs that might conict with for-work activities. New programming
71
should not interfere with the success of pre-existing programs, and pre-existing programs should not interfere with planned for-work programs. The local labor market must be able to absorb the additional temporary jobs created by for-work programming. For-work programs should not draw workers away from local industry or agriculture, including seasonal endeavors. The community and project location should be accessible enough for project supplies and payments to be transported, and communication lines should be sufcient for the projects administrative and technical needs.
HOW TO PARTNER WITH COMMUNITY GROUPS Community groups must be representative and participatory in nature. They should include members of different socioeconomic, ethnic, tribal, linguistic and/or religious groups in a community, different age groups and both women and men. For the programming to fully support women, they must not simply have equal representation, but also equal input in project planning. The community group should listen to the concerns and input of all members of the community while planning and carrying out the project. If there is an established community group, it is important to gauge its support for the programs activities and objectives, including their willingness to aid the target population. If there is no representative group, it may be possible to convince a currently established group to become more representative in order to be involved with the project. The implementing agency can also establish its own group if there is no existing group or if the existing one is biased or unrepresentative. In some communities, it is unacceptable for women to serve with men on general community leadership councils. If women and men have separate councils, these groups can be consulted separately, but the input of both groups should be valued equally. If there is no female community group, the implementing agency should form a womens advisory group. When approaching a community or group, it is important to avoid raising expectations until a realistic project is likely to be implemented. Avoid mentioning CFW in a way that will encourage a community to suggest ill-tting projects only to access the cash.
WHY WORK WITH COMMUNITY GROUPS?

For-work projects are most successful when they are community run. The agency should plan and implement projects in conjunction with community members, for they are best equipped to make valuable suggestions and work to ensure the long-term maintenance of community assets and infrastructure. They, not external agencies, best know who vulnerable community members are, how the community interacts with local authorities and the risks both of conict among potential participants and of cash being used to buy arms or fuel an ongoing conict. Evaluations of for-work projects conrm a correlation between early and continued engagement of communities and long-term maintenance of community assets and infrastructure.15 In addition, community involvement lowers security risks. Creation of community groups, inclusively representing all segments within a community, can strengthen group solidarity and common purpose, with impacts often lasting beyond the duration of the for-work project.
72
OUTLINING COMMUNITY RESPONSIBILITIES The implementing agency must work with its community partners in a collaborative manner to gain mutual understanding and to set expectations about the project and the communitys responsibilities. Project goals should be clearly explained by the agency, and should be easily modied based on community input. To ensure that both the agency and the community are substantive partners in the project and share a stake in the assets and infrastructure produced, it is important that the community undertake some of the developmental and administrative responsibilities. Suggested community responsibilities include: selecting projects with the implementing agency; liaising with the government for licenses and general communication; contributing supplies and materials or skilled labor for projects; developing criteria for participant selection with the implementing agency; identifying participants; disseminating information to the community about the program and its objectives; assisting in the distribution of cash, food, in-kind payments or vouchers; supporting monitoring and evaluation activities. Community contracting claries the responsibilities of both the implementing agency and the community and ensures that the community has a signicant role in the decision-making process.16 Community contracting should only occur if the community has the capacity to implement the projects.17 Where it can successfully occur, ILO notes that establishing an agreement is important for the following reasons:
Private contractors are not accountable to the community, but to the government or donor agency. Consequently, community concerns are not always taken into account, leading to conict between the residents and the contractor. Community contracting encourages beneciaries in the community to participate and assume responsibility for the project, allowing them to actively contribute to their own development. The community will develop a stronger sense of ownership and increase its involvement and interest in its subsequent maintenance.18 The preconditions for community contracting include: an organised target group; local or national government policies that support community development; a minimum level of capacity and efciency among members of the community-based organisation; legal recognition (if possible) of the representative community organization; an enabling environment for the implementation of development projects at a community level; a degree of decentralization, and the ability of local authorities to enter into community contracts.19
SELECTING PROJECTS
Community groups should take a lead role in selecting and planning projects that are both viable and valuable. Projects may include:20 improving or constructing wells constructing reservoirs
73
constructing troughs for animals constructing and/or cleaning refuse pits or latrines constructing irrigation systems clearing and plowing land clearing silt from elds, laying healthy soil planting and collecting fodder planting trees cleaning up towns road-clearing and rehabilitation raising ground levels or building walls to protect from ooding or erosion constructing community centers, schools or shelters collecting wood or timber making bricks manufacturing mats, nets and garments preparing charcoal Project selection guidelines should ensure: the project has a long-term impact; the bulk of project work can be done by unskilled laborers or requires skills that participants already have; the project is appropriate to target groups abilities and needs. Child care or exible hours should be provided for participants with household obligations, and low-intensity work should be available to older participants or those with disabilities. Projects must be logistically sound, and guarantee that: the implementing agency and its community partners have the administrative capacity to manage the program, keep track of participants
and facilitate distribution of payments; the agency has the technical prociency and experience necessary for any construction or rehabilitation project, or can hire external expertise; participants have the skills and the physical capacity to complete the project; materials can be procured and transported to the location; permits can be obtained; refugees in camp settings are allowed to work under legal agreements with host governments laws or regulations; (See Working with Host Governments chapter.) the project complies with labor standards and local regulations; basic facilities are available at the project site; there is easy access to food, or food can be provided as part of the program; the site is accessible to workers and is safe; transportation is provided, if necessary; the project is sustainable and does not harm the environment. Projects must be locally appropriate: Some communities may have preconceived ideas about what types of work are acceptable for women to participate in. To ensure that a project will not create backlash in the community for female participants, it is essential to consult with community groups about local customs. Both men and women should be consulted. The local customs, however, should not alone dictate the projects chosen, especially if women are typically excluded from any type of work. Instead, the agency should engage in a discussion about projects that may not t into the local status quo but could be accepted by the community. Further, the implementing agency should work with the community group to develop strategies to persuade the community to accept the project.
74
IDENTIFYING PARTICIPANTS
PARTICIPANT TARGETING Projects may have various target groups: vulnerable members of the displaced community who do not have other forms of income or food sources, households in need of additional income and food to endure seasonal hardships, or victims of a disaster that need a quick cash infusion to begin recovery. The target participant group may be dictated by an emergency situation, the agencys priorities or the communitys needs. As with most other projects, when selecting participants, it is important not to favor an ethnic or religious group or one side of a conict, because this type of bias could compromise both the program and community stability.
acres cleared or bricks produced; ensures that program resources are spread among more households in the community, but may not account for variations in household size.
PARTICIPANT SELECTION AND GENDER Both genders should be recruited to work on the project. Women, especially female household heads, can particularly benet from cash. Experience from previous programs indicates that they are more likely to ensure that food reaches children in a household, and in some settings are more likely to pay off debts and invest in the future by buying household assets or starting businesses.21 Practitioners should also identify opportunities to promote open access for qualied women at the management level. This can be effective for for-work programs that include task-based duties that require a manager who can control the quality of the work for each task. However, even programs that specically aim to aid women should target male participants as well. It is important to determine whether a program that targets only females puts women at risk. This could happen for several reasons: women might bear an unequal and strenuous burden by becoming sole breadwinners as well as caretakers, or they may become targets of resentment and even genderbased violence if a program targeting women is not well received in the community. In general, female participants of for-work programs in a variety of settings and cultures have reported an increase in their status within the community and household because they are able to earn income and support their households through such programs.22
SELECTION OF PARTICIPANTS AND HOUSEHOLDS The program may target either individuals or households. Targeting individuals: may provide for more accountability among workers with regards to attendance and quality of work; is better suited for individual skills development; allows multiple members of a household to participate so that larger households may earn more; however, it makes it harder for the program to reach the most households. Targeting households: allows household members to ll in for each other during illness or when other obligations must be met; is well suited to projects that pay for outputs instead of rates per hour or day; for example,
75
TIPS FOR WORKING WITH COMMUNITY GROUPS TO SELECT PARTICIPANTS In conjunction with community groups, develop specic criteria for participation. Ask the community group to suggest participants. Advertise the program to the target population as a whole so that people can apply to participate. Be cautious of personal favoritism or patronage by community group members or misrepresentation of need by potential participants. Verify that potential participants meet the criteria for participation. To ensure accountability once participants are selected, be sure to: verify participants identities; gather participant contact information; sign or otherwise mutually acknowledge agreements indicating that participants understand their obligations toward the program, as well as what they can expect in return.
children and youth with regard to reasonable hours worked and proper working conditions.23 (See Working with Host Governments chapter.) Older community members and/or those with disabilities are often among the most vulnerable and, in many cases, cannot undertake physically intensive projects. Ability-aware programs provide alternative work opportunities for these populations when necessary. Low-intensity and home-based projects should be implemented for them. Older or disabled participants may support livelihood projects by helping with child care programs or preparing lunches for other participants. Older persons often have a wealth of experience to contribute, not only in low-impact work projects, but also in project planning and implementation. Working with ex-combatants and other conictaffected participants provides an opportunity to incorporate peace building activities into work projects. Particular attention should be given to ex-combatants who must transition from military chains of command and participation in violence to community-based civilian life. Consider whether ex-combatants themselves should be targeted or if other members of their households might make safer spending choices. Evidence shows that cash programming for disarmament, demobilization and reintegration works better when it targets female dependents of ex-combatants.24
CONSIDERATIONS FOR SPECIFIC GROUPS Youth may participate in for-work programs, but age sensitivity is crucial. The agency should establish a minimum age that respects existing regulations established by the government or labor advocates and protects young workers. School-age youth may benet from for-work programming, but the agency must ensure that they are not missing school and have sufcient time for rest and leisure, in addition to school and work. Young workers may be granted additional breaks or fewer work hours. Article 32 of the 1989 United Nations Convention on the Rights of the Child provides protection for
DECIDING BETWEEN CASH-FOR-WORK AND FOOD-FOR-WORK The following tool should guide the decision on whether cash or food is the appropriate payment for for-work projects.25 However, cash should be the default method of payment. Cash allows participants to allocate their own spending, to consume a greater variety of food, pay off loans, pay school
76
or medical fees, and invest in income-generating assets or small business opportunities. Furthermore, experience shows that when food alone is provided, participants are likely to resell some of the food for less than its market value. This results in participants receiving less value for their work than they would with cash, while the implementing agency still incurs the cost of distributing food.26 Combine the tool with information gathered
from the assessment to determine whether the local market can support participants food needs, or their need for other goods, and whether other factors within the community indicate that cash, food or a combination of both is the appropriate payment. In some cases, a combination of food and cash may be the best t; however, it is important to consider the increased organizational capacity required in order to coordinate payments of each.
Figure: Flow Chart for Determining the Appropriateness of Cash or Food Programs Is there a cash economy and an operating market? Yes Is the market competitive, integrated and free of restrictions on moving goods? Partially Yes Will ination occur if cash is used? Mild Risk Pay partially in cash and partially in food or food vouchers. Pay particular attention to the potential problem during ongoing monitoring and be prepared to adjust the ration of cash to food. No Severe Risk Pay only in food, or, if food is available locally, food vouchers. No No
Have women asked for food payments due to fears that cash will be used for unproductive purposes (such as alchol consumption) or that attempts to contorol cash will cause an increase in GBV? Mild Risk No Severe Risk
Is there a risk that cash will be used to purchase arms or fuel an ongoing conict? Mild Risk No
Severe Risk Yes
Does cash distribution cause insurmoutable security risks for the agency or the community? No Pay in Cash
77
When food is available locally, but other factors indicate that food distributions should take place, food should be procured locally so as not to disturb local markets. It can be procured by the agency or, more simply, accessed through the distribution of vouchers. (See Disbursing the Payment section below.) Examples of the Appropriateness of Cash-forWork and Food-for-Work Programs Agency A wants to implement a for-work program in a community following a natural disaster. Some needed food items and goods are still sold within local markets, but other items are missing and supply lines have not yet been repaired. Agency A should provide food aid as well as cash aid so that participants can repair damaged homes and invest in the replacement of household assets.
Agency B wants to implement a for-work program in a returnee community that has just seen the end of a ve-year conict. Local leaders, ex-combatants and other community members from both sides of the conict indicate that cash is unlikely to be used to purchase weapons or resume the conict. However, some women express concerns that they will not be able to control spending enough to purchase sufcient food for their households, and worry that attempts to do so will cause violence towards them. The agency asks women whether they prefer to receive no cash at all or if they feel safe receiving some cash and some food. Women indicate that they wish only to receive food, which is available locally. The Agency should set up a voucher system so that participants can purchase food and necessary goods from local shops, supporting the local economy while also protecting the women.
78
CASE STUDY WFP Malawi Cash and Food for Livelihoods Pilot Project27
Agriculture in Malawi is highly dependent upon rainfall, causing swings between peak and lean seasons that cause vulnerability to food insecurity for rural populations. The World Food Programme (WFP) conducted a feasibility study in 2007 and identied two districts where food insecurity can be appropriately addressed by cash transfers. The project is meant to target rural groups28 that have ongoing, chronic insecurity due to successive disasters such as oods and droughts. WFP Malawis Cash and Food for Livelihoods Pilot Project is designed to provide participants with incentives for activitiessuch as agricultural production, environmental protection and rehabilitation, sh ponds and irrigation damsand compensate them with cash or food, or a mix of both. In addition to disaster risk reduction (DRR), the goal is to build community assets, stimulate local economies and serve as a social protection tool by strengthening livelihoods. Drawing upon lessons learned from other cash initiatives since 2000 and using participatory rapid rural appraisals (RRA), the pilot projects innovations include the following elements: It is a conditional transfer focusing on community and individual asset creation in a protracted situation. It utilizes existing rural banking infrastructure, including savings accounts and bank cards. It offers a unique interface for micronance initiatives and further individual asset building projects through the use of regular savings accounts as part of the phaseout strategy.29 The use of ATM bank cards is one of the primary innovations of this project. The cards carry biometrics to identify participants; a photograph of the cardholder as well as ngerprint data, which is stored on the card. Not only does the ATM system promote savings and enable linkages to micronance, no minimum balance is required, and participants have ongoing and protected access to their funds. Malawi Savings Bank (MSB) has extensive banking experience with poor rural communities and is a service provider in cash delivery. Holders of ATM cards can access money at MSB ATMs, branches and post ofces, where counters are equipped with ngerprint readers for identication. There is 24-hour ATM access, while bank branches and post ofces are open six days per week. For those who are more than 15 kilometers from these access points, a monthly transportation allowance is added to the value of each cash transfer received, which is itself based upon the standard for food recipients set out in the Sphere Humanitarian Charter and Minimum Standards in Disaster Response.30,31 The use of ATM cards is valuable to practitioners, as the delivery mechanism is efcient and clearly dened. With the consent of program participants, WFP is able to utilize bank data to monitor the use and frequency of access of participants bank accounts. Such data allow practitioners to inform future programming by understanding what services are used and when. In addition, using banks minimizes the risk of corruption because very few people are involved in the delivery of cash.
79
The project is meant to inform the development of the corporate cash policy and contribute to local and global learning on the use and impact of cash in rural, conditional contexts.32 Other objectives include: assessing WFPs capacity, effectiveness and efciencyin implementing conditional cash and mixed transfer programs; analyzing the advantages and disadvantages of each transfer program; estimating, in the context of seasonality, the best food/cash transfer share throughout the year.33
The value of cash transfers is index-linked to local market prices of maize and pulses. This is to ensure that the transferred purchasing power allows participants to access the equivalent of food commodities that beneciaries of food only (50kg of maize and 5kg of pulses) and a mix of food and cash (5kg pulses and the cash equivalent of maize) receive. While initial outcomes are meant to build community assets, the long-term goal is to secure sustainable livelihoods at the household level. The pilot projects phase-out strategy will provide training for community members in banking, savings and asset management. Participants will be linked to group savings models and microloan options in order to ensure the continuation of the accounts and its benets.34 The project is expected to effect change at both the household and community level. At the household level, transfers of food, cash and a mix of both cash and food are meant to address short-term needs. They also mitigate high food price impacts and vulnerability during the lean season. Further, savings accounts provide individuals with nancial identities, and may increase eligibility for microloans and credit. At the community level, asset creation is meant to build up community resilience to recurring shocks and build a basis for improved agricultural practices and activities. The pilot project will measure success in part by evaluating the relative household-level effects of food and cash transfers based on a pre-intervention baseline, mid-term data collection exercise and a post-evaluation household survey of a representative sample of beneciaries.35 Mobile help desk units were also established at the main bank branches where most participants draw their cash, comprised of a team from WFP, a partner NGO and staff from MSB, as well as locally elected community members. The help desk tool is meant to ensure that participants bank access runs smoothly, complaints are received and troubleshooting is provided in addition to gathering other qualitative data. The pilot project is implemented through a self-reliance lens focused on the reduction of dependence on aid. WFPs exit strategy is rooted in the community management of assets and participants continuous access to banking facilities and microloan options.
80
IMPLEMENTATION
DETERMINING COMPENSATION FOR FOR-WORK PROGRAMS
SETTING WAGES FOR CASH-FOR-WORK PROGRAMS Cash wages should be based on both market indicators and agency priorities: If the goal of the program is to inject cash into markets and aid in emergency rebuilding, the agency may want to pay wages that are higher than pre-conict or pre-disaster market levels. However, such a practice must be undertaken with caution, as it can disrupt the market and can exclude vulnerable target groups that are rarely incorporated into the average market.36 Further, higher wages must be accompanied by vigilant monitoring of the recovering labor market so that as local businesses recover and require laborers, they can afford to keep their workers and compete with for-work programs. Participants should know that the higher wage is a temporary measure. Wages set below the market level will help target the most vulnerable out-of-work community members. This is a common practice in CFW programs, but to avoid worker exploitation, wages should adhere to any regulated minimum and the local cost of living should be considered. Women and men must be paid equal wages for participating in for-work programs, even though this may not be a local practice. The standard of equal pay helps to elevate the status of women in their communities, and sets a precedent for women to receive equal pay from future employers.
Pay rates should be measured and selected according to the context. Mercy Corps recommends three options: Payment per unit, which pays for the completion of a measurable task, such as numbers of acres cleared. A drawback of payment per unit is that it requires more oversight, and requires a reliable supervisory staff who ensures all workers are being compensated appropriately.37 Payment per specied time frame is based upon a formula that estimates the amount of time it should take to complete a certain job and make payments only for that number of days.38 The disadvantage with this option is that it requires oversight in order to stay on schedule because this type of pay rate rests on an output-based system.39 Payment as daily wage is exible and is often utilized with projects of undened duration.40
CALCULATING FOOD PAYMENTS FOR FOOD-FOR-WORK It is the ILOs position that remuneration for foodfor-work programs should always include a cash component which must constitute at least 50% of the minimum wage or where there is none, of the market wage for similar types of work.41 ILO recommends the following steps to calculate the maximum amount of food that can be provided to food-for-work participants: Determine the current wage or market wage for related types of activity, and calculate the daily rate. Pay half the daily rate in cash. Establish the value of the food that will be used as partial payment. Ensure that this food is given an adequate and fair value. Using this information, calculate the amount of food that will cover the remaining half of the daily wage. When the value of food uctuates, the amount of cash remuneration can be adjusted accordingly, as long as it remains at least 50% of the total wage.42
81
SPECIAL ISSUES WITH FOOD-FOR-WORK Working with food presents several issues that do not arise with cash: It may be harder to present food as an incentiveinstead of an entitlementbecause it is hard for participants to believe that an agency would deny them food if they are hungry, and such a denial would present ethical issues for the agency. Because of this, participants may not take their obligations as participants in food programming as seriously as they might with cash programming.43 If the implementing or another agency is conducting free food distributions in the area, food will be an extremely poor incentive. Such free distributions would undermine FFW activities.
CASE STUDY Women Work for Cash and Improved Status44
A cash-for-work project in Bangladesh ran into resistance in the community, because in rural areas of the Muslim country, women are often prohibited from working outside the home. Participants encountered resistance from relatives and religious leaders who did not want them to participate in the projects, which involved raising land, raising burial sites and constructing feeder roads. Once the women began to earn income, their husbands and relatives became much more accepting of the program, and women felt that their status was improved because of their contribution to household nances and their equal input into spending decisions. When disputes arose, local committee members acted as outside mediators. Despite initial doubts, more than half of the programs participants were female. DISBURSING THE PAYMENT
82
Workers must be paid on time not only to honor the agreement, but also in order to maintain their condence in the program. In the beginning, it may be helpful to issue payments more frequently to reassure participants that they will receive compensation for their work. Administrative procedures should be in place to monitor project progress and/ or worker attendance and quickly track what is owed to each worker.
make payments for the agreed-upon fee (or alternatively, how much it would cost for the agency itself to distribute the cash); the reliability of the transfer institutions and what security risks might threaten their operations; how securely money is transferred; does the institution provide a risk-free service, or is there optional insurance? When choosing a disbursement point, it is important to ask: Is the location convenient and safe for participants? Do participants need transportation to reach the disbursement point? Can this be provided? Calculating the costs of disbursement will involve consideration of: the payment itself (multiplied by number of participants); the cost of administrative personnel (salaries and transfer expenses, based on additional staff needed or the amount of time staff spend on disbursement); transportation costs (vehicles, fuel, maintenance, drivers); ofce equipment for cash distribution (safes, accounting tools); handling costs (security guards, insurance, fees). If a decision is made to use a bank, it is necessary to ask: Who owns and manages the bank? Who are the shareholders? What is its balance of payment? What is its accounting system like? Has the bank been audited by a reputable international audit company or certied by the government?
CASH REMUNERATION Distributing cash for the work that refugee workers have completed is a huge undertaking. The agency must have the capacity to track participants work and what they are owed. Cash can be distributed by contracted institutions, such as local banks, money transfer agencies and post ofces, or it can be disbursed by the implementing agency if the agency possesses the capacity to do so. It is important to be clear about how often disbursements will take place and how much should be disbursed at one time. If the goal of CFW is to provide for basic needs, transfers should be fast, regular and in small amounts. However, if the goal of CFW is to support livelihoods recovery, people will need larger amounts of money, and therefore transfers should be disbursed less often. It is of prime importance to determine which payment methods participants are familiar with and which they prefer. In deciding which institution should be used to transfer the cash, it is important to consider: what the transfer institution charges; how the local community perceives the transfer institution; how frequently the transfer agent will
83
Questions to be asked of remittance agencies and informal institutions include: If the institution is not ofcially certied, who uses it and why do they trust it? Are their accounting systems robust? How do they ensure that they have enough cash on hand? How does the institution verify the identity of recipients? (See the Remittances chapter.) If it is decided to use post ofcesassuming that they existit is important to ask: Are people familiar with them? Are they secure? Are they willing to hold and distribute payments on a regular basis? Do they have sufcient human resources?
provide training for participants who are not familiar with the disbursement method, for example, ATMs, where applicable; inform them of their labor rights and the complaints procedure; explain that if there are security threats, the program will be suspendedthis should encourage self-policing; require participants to present identication or have a trusted community member vouch for participants identication; require participants, and possibly also their witnesses, to either sign or provide a ngerprint on a receipt to acknowledge payment. When an agency is disbursing funds, it needs to:45 request bills in small denominations for dividing up for participants payments; count and divide the money prior to distribution, preferably at the bank; divide the money, even within a vehicle, and use a tracking mechanism with each satchel of cash to ensure security and guard against theft; vary the time, vehicle and routes used to transport cash; use unmarked vehicles not bearing the agencys name; decentralize distribution so small amounts of money go to different locations and participants can receive payments closer to home; distribute payments to small numbers of workers at a time; purchase insurance; consider hiring security guards, but bear in mind that if they are not otherwise used, their presence will alert more people and potential malefactors to the location of cash; minimize the number of people who know when and where cash will be handed out;
FINDING A RELIABLE TRANSFER INSTITUTION If it is decided that an outside institution will distribute the cash, it is essential to prepare a memorandum of understanding (MOU) that details the charge of services to be provided and all aspects of the transfer process. The document should include a complaints procedure for participants in the event that the nancial institution does not perform, and to specify means of recourse for unfullled services. In whichever manner disbursements are made, the agency itself should verify worker attendance sheets and other documents before disbursing payments, and compile a list of how much each participant is owed. It is important to: inform participants about the procedure for cash transfers;
84
consider selecting literate participants to count money, read contracts to others and generally help participants understand the payment process.
transporting food to participants storing food so that it is both well preserved and safe from security risks; distributing food at locations that are accessible to participants, keeping in mind that participants must carry the food to their homes; monitoring the food supply at various points on the supply line to prevent theft; the disappearance of small amounts of food may be hard to detect. Some of the methods for cash distribution apply to food distribution, including methods of verifying participant identity and receipt of payment and distribution tactics. Food should never be imported unless it is unavailable locally. Importing food disrupts local markets.
CASE STUDY Agency Cash Distribution46
In one large-scale emergency, the most rapid and cost-effective way to implement a cashfor-work program was for the agency itself to disburse payments. To minimize security risks, the agency divided the money into small amounts so that distribution was decentralized. Payments were made through group leaders, who oversaw 20 workers each. Group leaders who had literacy and numeracy skills were elected by participant groups. Everyone in the group knew when payments were to be made and how much they were entitled to. Group leaders were monitored by area supervisors. Supervisors conducted unannounced on-site checks and reviewed group leaders records. This ensured that group leaders kept accurate attendance records and were not paying ghost workers, imaginary participants whose salaries could be embezzled. Supervisors also made sure that cash distribution was done on time and was fair and free of discrimination, sexual exploitation or other abuse. This disbursement method was fast, community run and gender sensitive.
VOUCHERS When food distribution is necessary and food is available locally, vouchers can be issued to allow participants to purchase food (and, if desired, other specied goods) from community businesses. This method supports local markets, but accommodates situations in which cash distribution is unwise. Agencies need to arrange for businesses to accept vouchers for products and arrange a reimbursement procedure for businesses. This reimbursement can happen through the mechanisms described above for cash distribution, or can be handled directly by the agency. It is logistically easier than distributing cash directly to participants because there will be fewer stores than participants and, therefore, fewer end recipients for cash. It is important that participants are made aware of the exchange process, which goods they may purchase and which stores will accept vouchers. Security should be enhanced by considering:
FOOD REMUNERATION Compensating displaced workers with food requires logistics in food distribution, involving: procuring food; planning safe and reliable supply lines for
85
How easy is it to produce false vouchers? Can businesses provide the capital up front to buy stock for the rst voucher purchases, or will they need a loan to cover these expenses? What protective measures can be put into place to ensure competition and prevent stores from increasing prices for goods purchased with vouchers?
FOOD AID Because the program requires work, some of the most vulnerable community members may be physically unable to participate. Food aid has often been packaged with for-work activities. It supports those unable to work and also enables recipients of cash to spend more cash on paying off debts and investing in the future. Research has shown that refugees and IDPs own economic resourcefulness is critical to their survival. Food aid complements their survival strategies and prevents negative coping strategies that put them at increased risk.48
CASE STUDY Vouchers for Equal Pay47
While vouchers are usually arranged for food and goods, they can sometimes be used for cash payments. One cash-for-work program in India arranged vouchers for cash payments to ensure that male and female participants would receive equal wages. Because the administration of a public works project to rebuild saltpans (where salt is harvested) in the wake of a natural disaster required outside expertise, the agency contracted with a local employer. However, it was not local practice to pay women as much as men, so the agency arranged for the local employer to give workers vouchers, which the agency then exchanged for equal pay. Local women felt that the equal pay gave them more equal rights and standing.
SAVINGS PROGRAMS Participants of CFW programs have expressed a widespread wish for savings support. Cash-for-work programs can partner with existing group savings programs in the area or CFW can be implemented along with savings initiatives, such as group savings collectives. Cash savings from for-work programs can allow participants access to credit for the rst time, as well as local loan initiatives that provide good interest rates. If a local bank is handling cash distribution, it is a good opportunity to set up bank accounts for all participants. When negotiating cash distribution fees with the bank, seek the provision of a package for participants that includes a savings account, access to credit and fair interest rates, ATM access where applicable and access to any other services the bank provides its customers.
HOLISTIC PROGRAMMING The effectiveness of for-work programming can be increased by running other programs that complement for-work. Some possibilities include:
BUSINESS DEVELOPMENT SERVICES One of the most effective ways in which cash-forwork transitions participants to independence is by providing them with capital to start small businesses, which can continue to provide income long after CFW has nished. Business development
86
services help more of these attempts succeed. It is important to remember that not all participants have prior business experience. Every start-up attempt would benet from a business skills training program, and some participants might require training in numeracy or accounting. Other support services for businesses include group procurement collectives that order products in bulk for microbusinesses that sell the same items. (See the Enterprise Development and Micronance chapters.)
A common concern with for-work activities is that they discourage existing local volunteer efforts by providing compensation for work that formerly was done by volunteers. It is therefore important to encourage communities and community groups to continue voluntary contributions to the community in addition to for-work programs, to ensure that volunteerism will continue when for-work ends. Another successful community initiative involves for-work participants supporting those vulnerable community members who are unable to work and therefore cannot take advantage of the program. Participants of some CFW programs have contributed a percentage of their wages into donations or loans for community members unable to participate. Particularly in disaster recovery situations, participants can also organize a portion of their wages to pay for additional community assets or infrastructure.
MARKET ACCESS PROGRAMS Cash inows from CFW can strengthen markets by providing incentives for traders to engage with the local market. However, a variety of obstacles can hinder market integration, discourage competition and encourage ination. Some for-work projects increase market access, such as clearing roads into the community. Other initiatives that support market access include additional improvements to physical market access, campaigns that promote the local market to traders and suppliers, as well as development of infrastructure that allows local markets to communicate, thus enhancing market integration and addressing shortages and surpluses.
ONGOING PROJECT MONITORING

Before the project begins, the agency must formulate a time line and collect baseline information to allow comparison with results from subsequent surveys. Information should be gathered with random household visits, interviews, community focus groups and entry, exit and follow-up surveys. Unannounced checks at project sites will help ensure worker productivity and safety, and verify there are not any participants receiving payments who are not actually showing up to work. Day-today project documentation should be regularly reviewed. Market prices and wages must be monitored and compared to neighboring or similar communities that do not have for-work programming.
COMMUNITY DEVELOPMENT INITIATIVES For-work programs strengthen community organizations by involving them in planning and implementation. Further support for community groups involves encouraging more community members to get involved. The stronger these groups are, the better equipped they will be to manage and maintain the community assets and infrastructure developed by for-work programs after the programs have nished.
87
Questions to consider include: Are established benchmarks, goals and time lines being adhered to? If not, why not? Should the obstacles have been foreseen and planned for or were they unavoidable? Are plans for transitioning out of the project still viable or do they need to be adjusted? What objectives were set for program participants? Who in the community is beneting from the program, and who is excluded? Was the participant selection process effective and fair? Are participants showing up to work? If they are not, what are the reasons: other demands on their time, frustration with low payment levels, lack of transportation or other reasons? Is the community maintaining its involvement in running the program? Do they perceive it to have long-term benets? How is the goods market reacting to cash inows or food distribution? How accessible are goods? What is happening to prices? How is the local labor market faring? Have wages changed because of the for-work program? Are there enough laborers to ll the demands of local businesses and agricultural needs? What is cash being spent on? Is it contributing to greater food security? Are participants paying debts, saving or investing? What is the impact of cash on gender and household relations? Is there increased violence? Are women seeing an increase in status and respect? Is cash being spent antisocially on such things as alcohol, gambling or weapons? Are women happy with the balance of cash and food payments?
Are payments or food disbursements being made smoothly, accurately and on time? Are there any security problems? Are there issues with corruption or falsication? Are participants satised with the method and location of disbursement?
CASE STUDY Suspending a Program for the Harvest49
During a cash-for-work program implemented in Sri Lanka following the 2004 tsunami, agency workers conducted ongoing assessments of the program and of local markets. When the harvest season arrived, the agency realized that participants were not harvesting their rice because participation in cash-forwork was more lucrative. The agency felt that occupying workers in cash-for-work reduced local resilience and self-sufciency, and harmed local agriculture. The agency was faced with a choice to either halt the program or reduce wages so that participating in the local harvest would be more protable. In order not to interfere with local agricultural production, the agency suspended the cashfor-work program during the harvest season.
Project monitoring may uncover unintended negative consequences. The kinds of unintended impacts to check for include:
88
an increase in gender-based violence due to conicts over spending or household chores; increased stress on female participants due to the for-work workload on top of child care, cooking, cleaning and other household responsibilities; an inordinate demand for labor due to participants participating in for-work programs; this can be triggered by unforeseen seasonal changes in local labor demand; a decrease in local volunteerism because for-work projects ll a need once occupied by voluntary work; ination in the goods market caused by the inux of cash with CFW projects; distortion of the market due to an increase of food resources; potential for low-quality infrastructure if self-help projects are not carried out with proper consideration; potential exploitation of workers or abuse of power by program staff in their provision of cash and food to program participants; negative environmental impacts that can result from the rapid or poorly planned implementation of for-work programs.
any harassment, discrimination, genderbased violence or sexual exploitation among participants or from program staff; changing the amount or type of payment due to participant requests or because of changing market indicators; providing additional services, such as on-the-job lunches, transportation or coordinated savings groups, if such needs become apparent; suspending the program temporarily to resolve security risks or fraud; suspending the program to allow participants to participate in seasonal work, such as harvesting or weeding; adjusting the program to avoid negative environmental impacts; adjusting original goals, benchmarks or time lines to t realities. It is important that projects that are rebuilding infrastructure or assets do so in a way that builds back better (B3) to avoid environmental impacts that can affect the local ecology and/or the humanitarian situation. Quickly implemented infrastructure and rehabilitation projects may not take into account negative impacts, such as the dumping and burning of waste, or clearing of land that can increase the likelihood of natural disasters and future vulnerability in the area. Practitioners should identify ways to work with local ofcials on public works projects that can prevent such impacts. The Inter-Agency Standing Committees (IASC) Guidance Note on Early Recovery50 addresses such concerns, and can be located at www.undp.org/cpr/ iasc/content/docs/Nov07_Links/Doc_13.pdf.
ADJUSTING THE PROJECT

If any harmful consequences are indicated by ongoing project monitoring, programming should be immediately adjusted to mitigate these effects. Possible adjustments include: altering the payment disbursement mechanism, location or frequency due to participant requests or security concerns; changing the work unit requirements in order to protect worker safety or preserve the local labor market; suspending or adjusting the project due to
89
WHEN TO END FOR-WORK PROGRAMS

For-work programs must establish the criteria for the end of a CFW or FFW program. Programs end because they have run out of funding, but successful programs should meet pre-established benchmarks upon their completion. It is important to establish a time line for reaching these goals, but exibility is necessary to allow for unexpected needs and to ensure that the program is phased out in a way that will not negatively affect participants. Some potential benchmarks include: participants having saved enough capital to invest in household assets or start businesses that will protect them from future vulnerability; participants having saved enough income, food or household assets to protect them through a hard season or a climate shock; local labor markets having been re-established and for-work programs are no longer needed to provide income or incentive to return; rehabilitation or construction projects having been completed to an agreed-upon sufcient standard. Because cash-for-work is a temporary employment program, its cessation will leave many participants unemployed. Towards the end of a CFW project, work hours should be intentionally reduced to give participants time to search for other employment. A job placement program can also be implemented to help participants nd work based upon labor market demand. (See Training and Placement Programs chapter.)
DEVELOPING AN EXIT STRATEGY

Practitioners should assess the implementation and progress of the for-work program through ongoing monitoring to develop a plan for the successful attainment of livelihoods for participants once the program ends. Exit strategies can include a gradual scaling down of the program; aiding participants with job placement or skills development; or transitioning the for-work program into other livelihood support services that deal with savings, loans or business development services. There should also be careful planning around public community assets and infrastructure to ensure their upkeep after the program comes to an end. Assets and infrastructure that have been constructed or rehabilitated during a for-work program should be handed over to the community to be maintained. To ensure sustainability, local government should be involved beyond the construction phase by overseeing the maintenance work.
90
EVALUATION
PARTICIPATION It is important to assess whether members of the displaced community were involved in each stage of the project as equal stakeholders in the common objective. Other stakeholders that should be involved in M&E include aid agencies, communitybased organizations and government agencies.
Were the projects completed? How well did the program adhere to the initial schedule? Were goals and benchmarks met? Were they met on time? Were delays unavoidable? Were costs incurred as expected? How could they have been reduced? Were the projects useful? Did they provide a lasting service to the community? Did the transition function smoothly? Were workers able to nd future employment or success with businesses? Did the community maintain the assets or infrastructure built by the project? If applicable, were relations with the host community improved? If applicable, were community tensions or conicts avoided or defused? What were the intangible benets of the livelihoods project (sense of independence, social capital, self-esteem or teamwork)? How can these benets be measured? Be sure to record lessons learned and recommendations to improve future programs.
ENSURING SUSTAINABILITY Because for-work projects are community-run, workers and members of the partner community group should be committed to the continued upkeep of new community assets or infrastructure. A small maintenance fund may be necessary to ensure the longevity of some projects. Savings programs need to ensure that participants can maintain their income. Measuring Success and Evaluating Impact The following questions should be disaggregated by gender and asked of households, merchants and other market participants, and community groups: Are there measurable increases in self-sufciency? Is for-work programming improving participants long-term economic opportunity? Were participants happy with the type and amount of payment they received? How was the money spent? Did payments (cash and/or food) provide for immediate needs? Did cash create a foundation for future livelihoods security? How were household spending decisions made? What did the project do for the status of women within their households and communities? Did participants show up to work? What was the program dropout rate?

Harvey, Paul. Cash-based responses in emergencies. Humanitarian Policy Group, Overseas Development Institute, HPG Report 24, January 2007. www.odi.org.uk/resources/hpg-publications/ reports/24-cash-based-responses-emergencies.pdf HelpAge International. Analysis of livelihood cash grant programme implemented for older people after Tsunami: Banda Aceh, Indonesia. 2008. www. helpage.org/Resources/Researchreports
91
ICRC and International Federation of Red Cross and Red Crescent Societies. Guidelines for cash transfer programming. 2007. www.icrc.org/web/ eng/siteeng0.nsf/html/publication-guidelines-cashtransfer-programming ILO. Employment-Intensive Infrastructure Programmes: Labour Policies and Practices. 1998. www.ilo.org/public/english/employment/recon/eiip/ publ/reference.htm#key . Livelihood and Employment Creation: Cash-For-Work. ILOs recommended management and policy options for employment friendly reconstruction in Sri Lanka, 2005. www-ilomirror.cornell.edu/public/english/region/asro/ colombo/12cashforworkA.htm . Livelihood and Employment Creation: Food-For-Work. ILOs recommended management and policy options for employment friendly reconstruction in Sri Lanka, 2005. www-ilomirror.cornell.edu/public/english/region/asro/ colombo/12foodforworkA.htm ILO and WFP. A Guide on Food as an Incentive to Support Vulnerable Households and Communities in Securing and Improving their Assets. May 2002. 82.77.46.154/gsdldata/collect/unhcr/index/ assoc/2002/d03020/000.pdf Jaspars, Susanne and Paul Harvey. A Review of UNICEFs Role in Cash Transfers to Emergency Affected Populations. UNICEF, EMOPS Working Paper, October 2007. www.odi.org.uk/HPG/cashresources. html Mercy Corps. Guide to Cash-For-Work Programming. 2007. www.mercycorps.org/les/le1179375619.pdf
Oxfam Great Britain. Oxfam GBs experience with Cash for Work: Summaries of evaluations in Bangladesh, Uganda, Kenya, Afghanistan and Haiti. June 21, 2005. www.oxfam.org.uk/resources/downloads/ reports/cfw_case_studies.pdf WFP. The Use of Cash/Vouchers in Response to Vulnerability and Food Insecurity: Case Study Review and Analysis. Special Initiative for Cash and Voucher Programming, UN WFP Southern Africa, April 2007. www.odi.org.uk/HPG/papers/resources/ SICVP-Case-Study-Review.pdf
NOTES
1 ILO, Livelihood and Employment Creation: Cash-ForWork, ILOs Recommended Management and Policy Options for Employment Friendly Reconstruction in Sri Lanka (2005): p. 6. www-ilo-mirror.cornell.edu/public/english/ region/asro/colombo/12cashforworkA.htm. Ibid. ILO, Livelihood and Employment Creation: Community Contracting, ILOs recommended management and policy options for employment friendly reconstruction in Sri Lanka (2005): p. 6. www-ilo-mirror.cornell.edu/public/english/ region/asro/colombo/12communitycontractingA.htm ILO. Livelihood and Employment Creation: Food-For-Work. ILOs recommended management and policy options for employment friendly reconstruction in Sri Lanka, 2005, p.6. http://www-ilo-mirror.cornell.edu/public/english/region/ asro/colombo/12foodforworkA.htm Ibid., p. 9. Ibid., p. 6. See Shannon Doocy et al., The Mercy Corps Cash for Work Program in Post-Tsunami Aceh (Mercy Corps and Johns Hopkins Bloomberg School of Public Health, 2005), www.mercycorps.org/topics/tsunami/1016 See also, Lesley Adams and Retno Winahyu, Learning from Cash Responses to the Tsunami, Humanitarian Policy Group (Overseas Development Institute, October 2006), www.odi.org. uk/resources/details.asp?id=291&title=learning-cashresponses-tsunami-case-studies. Brian Jones, Addressing Drought and Severe Winter Sin Hazarajat, Afghanistan, 2003-2004, in Oxfam GBs Experience with Cash for Work: Summaries of Evaluations in
2 3
5 6 7
92
Bangladesh, Uganda, Kenya, Afghanistan and Haiti, Oxfam GB, Evaluation (2005): pp. 9-10, oxfam.org.uk/resources/ downloads/emerg_manuals/oxfam_cash_case_studies.pdf. 9 10 See note 1. Susanne Jaspars and Paul Harvey, A Review of UNICEFs Cash Transfers to Emergency Affected Populations, UNICEF, EMOPS Working Paper (October 2007): p. 9, www.odi. org.uk/HPG/cashresources.html. See note 4. Ibid. Ibid., p. 9. Ibid., p. 7. See Mercy Corps Indonesia and USAID, Jakarta Field Study, Built to Last: A sustainability study of Food-For-Work Infrastructure Projects in 1999-2004 (January 2005): pp. 5, 12, www.mercycorps.org/countries/indonesia/1066. See note 3. Ibid. Ibid. Ibid., p. 7. See Sarah Lumsden and Emma Naylor, Cash for Work Programming: A Practical Guide, Oxfam GB (June 2002): p. 16, www.odi.org.uk/hpg/papers/resources/Oxfam_ Practical_Guide.pdf. See also, Pantaleo Creti and Susanne Jaspars, eds., Cash-Transfer Programming in Emergencies. Oxfam GB (2006): pp. 58-60, publications.oxfam.org.uk/ oxfam/display.asp?isbn=0855985631. World Food Programme, Focus on Women: In Both Its Emergency and Development Projects, WFP Has a Special Commitment to Helping Women Gain Equal Access to Lifes Basic Necessity, www.wfp.org/food_aid/food_for_ women/index.asp?section=12&sub_section=4 (accessed January 23, 2009). See also, Oxfam GB, Oxfam GBs Experience with Cash for Work: Summaries of Evaluations in Bangladesh, Uganda, Kenya, Afghanistan and Haiti (2005): p. 2, oxfam.org.uk/resources/downloads/emerg_manuals/ oxfam_cash_case_studies.pdf. Ibid. This nding was widespread in CFW, FFW and other income-generating projects. United Nations, Convention on the Rights of the Child, Article 32, November 20, 1989, pp. 10-11, www.unhchr. ch/html/menu3/b/k2crc.htm. See Sigrid Willibald, Does Money Work? Cash Transfers to Ex-combatants in Disarmament, Demobilisation and Reintegration Processes, Disasters, volume 30, no. 3 (September 2006): 326. Adapted from Pantaleo Creti and Susanne Jaspars, eds., Cash-transfer Programming in Emergencies, Oxfam GB (2006): p. 22, publications.oxfam.org.uk/oxfam/display. asp?isbn=0855985631.
26
Paul Sigrid, Cash-based Responses in Emergencies, Humanitarian Policy Group (Overseas Development Institute, HPG Report 24, January 2007), www.odi.org.uk/ resources/hpg-publications/reports/24-cash-basedresponses-emergencies.pdf. WFP Malawi, Cash and Food for Livelihoods Pilot Project, WFP Internal document (October 2008). Having an ability to do physical work is a precondition for participating in the scheme. See note 27, p. 6. Ibid., p. 15. Sphere Handbook, www.sphereproject.org/content/ view/27/84/lang,English. See note 27, p. 6. Ibid., pp. 6-7. Ibid., p. 8. Ibid., p. 16. See note 1, p. 7. Mercy Corps, Guide to Cash-for-Work Programming (2007): p. 12, www.mercycorps.org/les/le1179375619.pdf. Ibid. Ibid. Ibid. See note 4, p. 8. Ibid. Oxfam GB, Cash for Work Programme in Central Afghanistan (2006), www.oxfam.org.uk/what_we_do/where_we_ work/afghanistan/cashforwork/index.htm (accessed May 2008). See note 7. See note 36. Ibid. Oxfam GB, Salt of the Earth, Oxfam GB website (June 2005), www.oxfam.org.uk/what_we_do/emergencies/ country/asiaquake/reports/saltpans_june05.htm (accessed May 2008). WFP, Food Aid and Livelihoods in Emergencies: Strategies for WFP, Executive Board Annual Session, May 5, 2003. ftp://ftp.fao.org/docrep/fao/meeting/009/ae518e.pdf. Interview with Anna Young, Mercy Corps, August 1, 2007. IASC Cluster Working Group on Early Recovery, Annex 5: Analysis of Environmental and Natural Resources Issues, in Guidance Note on Early Recovery (October 2007): p. 53, www.undp.org/cpr/iasc/content/docs/ Nov07_Links/Doc_13.pdf.
27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43
11 12 13 14 15
16 17 18 19 20
21
44 45 46 47
22 23
48
24
49 50
25
93
Building In-Camp Economies
INTRODUCTION
This chapter addresses in-camp livelihood interventions, focusing on both relief substitution and incentive work. These interventions are intended to meet humanitarian agencies need for goods and services while also providing employment to refugees and internally displaced persons (IDPs), particularly in contexts where there are restrictive host government policies against displaced populations working in local communities. Nearly all refugee and IDP camp settings have some sort of existing economy in which these populations conduct a number of entrepreneurial activities in order to generate income. Small-scale bartering and petty trade occur for goods and services, such as the growing and preparing of food, livestock-raising, rewoodgathering, carpentry, welding, tailoring, textile production, money exchange services, the use of telephones and/or charging of mobile phones, the repair of electronics and other items, and transportation.1 In cases where displaced people have some freedom of movement, they may also leave the camp in order to do piecemeal work or perform day labor. Livelihood programs being designed and planned in these settings should understand, build upon and expand the in-camp economies that already exist. Relief substitution and incentive work are two interventions common to camp settings. Humanitarian organizations have a critical role in providing livelihood opportunities to camp residents who can in turn assist nongovernmental organizations (NGOs) and United Nations (UN) agencies with producing necessary goods for distribution to residents and perform certain services in order to assist in the running of
94
BUILDING IN-CAMP ECONOMIES
the camp. Not only can displaced workers develop their skills and build transferable skill sets that can be used post-displacement, refugees and IDPs are often motivated, effective organizers who know the needs of their communities well. Facilitating the use of these specic interventions is meant to tap existing skills, introduce new skills and build the potential for self-reliance and the economic stability of displaced people. The development of relief substitution and incentive work interventions can help to infuse cash into the camp economy and enable refugees and IDPs to lessen their dependence on aid in order to gain economic self-sufciency and food security. This can better prepare them for their transition to one of the durable solutions: repatriation to country of origin, integration into the community or resettlement in a third, usually Western, country. When other employment and livelihood activities are not an option due to governmental restrictions or geographical constraints, operational agencies have a responsibility to provide opportunities to refugees and IDPs through the use of relief substitution and incentive work programs. Anything provided by organizations to the displaced population should be assessed to see if and how it could be produced by members of the displaced community themselves. As many in-camp staff positions as possible should be lled by refugee and IDP workers. While the relief needs of agencies can be temporary in nature, many protracted refugee situations have shown that relief substitution and incentive work can employ refugees for many years to address the ongoing needs of the displaced population. Agencies should be thinking about how to utilize every opportunity to increase the scale of participation to build refugees skills and contribute to these needs within the camp.
KEY LEARNING POINTS

Relief substitution and incentive work interventions provide a source of income for displaced people that can promote self-reliance and economic security. Relief substitution and incentive work interventions provide an opportunity for refugees to maintain and build upon existing skills and learn new skills in preparation for durable solutions. Proper sensitivity must be given to gender, age and ability when selecting and working with participants. Programs must ensure that participants are aware of their rights, responsibilities, and the potentially short-term nature of relief substitution and incentive work interventions.
95
ESSENTIAL ELEMENTS
Denitions Relief substitution is the local production of relief items for distribution to refugees and IDPs. Rather than agencies buying-in and distributing proprietary products, they work with refugees, returnees and local communities who produce and sell products to humanitarian relief programs.2 Goods that aid agencies would otherwise import or purchase for distribution to displaced people in their relief efforts include vegetables, grains, fruit, soap, mosquito nets, mats, utensils, tools, blankets, sleeping mats, sanitary napkins, tents, knitted clothing, school uniforms, bags, chalk for schools, bricks, mud stoves, wheelbarrows and school desks. Incentive work includes jobs performed by refugee and IDP workers, who receive incentives for their work. Incentive workers carry out tasks associated with the running of refugee and IDP camps; they can be employed in occupations such as school teachers, health workers, translators, community outreach workers, sanitation and construction workers, security guards, vehicle mechanics, janitors, cooks, distribution clerks, ofce staff and gardeners.
In a camp for internally displaced Nepalis, women produce cloth for sanitary napkins, which are distributed to all women and girls aged 14 50 in the camp. Womens Refugee Commission/ Dale Buscher
96
SPECIFIC INTERVENTIONS: RELIEF SUBSTITUTION AND INCENTIVE WORK

RELIEF SUBSTITUTION
Relief substitution can play an important role in the livelihoods development of refugees and IDPs, particularly with reductions in humanitarian aid, the global food crisis and in protracted refugee situations. This type of intervention is best suited to settings with restricted access to local markets or in cases where host government policies place restrictions on the employment of displaced people. The market for the goods and services provided is driven by the demands of relief agencies operating in the region, but should be informed by market prices and local access. It is also important to consider the potential impact of relief substitution on the local economy; when possible, raw materials should be purchased locally in order to support the host community. Whenever possible, camp residents should themselves produce items that are procured for distribution to camp-based populations. Rather than procuring items outside the camp, the humanitarian organization brings back items produced by camp residents for subsequent distribution. This practice both builds skills and generates income for those engaged in production. Ideally, the relief substitution activities should have some relevance to future livelihoods that participants may engage in post-displacement. Practitioners should think about how the skills used can be translated outside the camp and what other skills are necessary to create more sustainable ways to create economic security for the long term. It is important to identify other income generation opportunities and develop transferable skills for when relief substitution ends.
INCENTIVE WORK
Like relief substitution, incentive work is another livelihoods programming option in situations where host governments prohibit displaced people from working. If the host government allows refugees to receive incentives for their labor, incentive work programs can be created to provide displaced people with employment opportunities. Workers should be placed in jobs that match their skill sets and experience. However, many agencies provide additional training for workers to meet demands associated with the daily management and maintenance of the camp. As with relief substitution, opportunities should be identied to build upon existing skills as well as develop or provide training in skills that will be transferable post-displacement. To the greatest extent possible, the work that is done in refugee and IDP camps should be done by members of the community themselves. This not only taps existing resources, skills and knowledge, it promotes community responsibility and community self-reliance, and helps prevent the erosion of skills during displacement. Common incentive work positions include the employment of refugee and IDP teachers, health workers, community mobilizers and janitors. Incentive worker positions may be longer-term employmentsuch as teachingor short-term, projectbased employment, such as day labor for repairing roads or schools within the camp. Providing even small amounts of money to these refugee and IDP staff members stimulates the in-camp economy and allows those engaged as incentive workers to use their incentives to supplement their food rations, buy needed personal hygiene items and clothes and purchase medicines.
97
CASE STUDY Oxfam GB Provides Incentive Work in Kenya3
In the Rift Valley Province, Oxfam Great Britain sought to improve the sanitation and water provision in a camp for Kenyan IDPs. Kenyan IDPs were offered opportunities to dig latrines that would provide the needed infrastructure just outside the camp. While the IDP workers were not employees of Oxfam, they were provided with incentive payments to provide some assistance with their livelihoods. Oxfams public health engineer explained: We pay each man a small amount for their work. Theyre volunteers not employees, the payment is just enough to act as extra incentive. We also provide all the toolsbuckets, shovels, picksand the building materials.4 The program also has an integrated approach to disseminating the principles of basic hygiene to ensure clean facilities and keep the community healthy, promoting the participation of IDPs in the well-being of their community.
ESSENTIAL ELEMENTS OF IN-CAMP INTERVENTIONS

In order to be successful, both relief substitution and incentive work interventions should include these essential elements: Adaptive and Responsive Programming Relief substitution and incentive work practitioners should be open to suggestions from the participants of the program, and ensure their participation. Displaced participants should be able to convey the types of projects they would be interested in, as well as what the needs of the community may be. It is essential to institutionalize a procedure for feedback that might include surveys, interviews, group discussions, staff meetings and employee reviews in which program participants have a means to voice their opinions and concerns. If programs do not take participants special needs and/or recommendations into consideration, there may be a lack of trust or communication between participants
and practitioners, which may lead to program failure. The participation of the displaced community can help strengthen a sense of commitment to in-camp programs. Program Transparency Policies regarding the participant selection process, workers rights and hiring and ring procedures should be transparent and well known. This can help to circumvent unfair treatment or favoritism in in-camp interventions. A lack of transparency may lead to labor exploitation if workers are not aware of their rights and responsibilities. It is also essential to make the time frame of positions well known to ensure that participants employment is not terminated without notice, leaving them without the ability to plan for longer-term security and/or a subsequent livelihoods strategy. Access to Programming Many refugees are not aware of in-camp employment opportunities with relief agencies.5 It is essential to diversify the methods of recruitment,
98
paying particular attention to ensuring access to work for women and vulnerable groups. Job advertisements should be widely accessible so that refugees can apply the jobs they are interested in. Supporting Long-term Stability Relief agencies should ensure that incentive and relief substitution workers compensation is set at an appropriate and non-exploitative level in order for them to build a sustainable livelihood for themselves and their households. Because many host countries have restrictive policies concerning compensation for employment, the displaced should have other types of programming available to them. Incorporating a savings program that allows participants to save a certain amount of money each month and plan for the future is a great example of how employers can help relief substitution and incentive workers save their earnings and offset future risks, thus making their livelihoods more sustainable. (See the Micronance chapter for more information about savings methods.) Harmonized Compensation Relief substitution and incentive workers are sometimes paid different wages for the same labor by different organizations or divisions within the same organization. This must be resolved by ensuring that workers compensation is harmonized within and among organizations. This policy of harmonization prevents unrest among refugee workers due to a perceived lack of fairness. Harmonizing compensation and creating clear incentive worker pay scales also enhance transparency and accountability. Organizations hiring refugee and IDP workers also need to take pay scales into consideration for the different jobs these workers ll. Teachers, health workers or janitors may require different pay scales. Organizations also need to take
into account other employment and income generation opportunities displaced people have and ensure that the compensation for teachers and health workers is adequate to keep trained participants in these positions. Skills Development In-camp livelihood interventions should build upon displaced participants existing skills and/ or should help them learn transferable skills that can facilitate their economic security once resettled, repatriated or integrated into the local community. The participation of refugees and IDPs in other livelihood interventions, such as training and placement programsincluding employment readiness and life skills training will enable them to strengthen their skills and have the potential to build longer-term livelihoods security. (See Training & Placement Programs chapter.) Room for Advancement It is ideal to create programs in which in-camp workers have room to further develop their profession or transfer their skills to another occupation post-displacement. Such a consideration may increase workers satisfaction with the project, as well as their motivation in the work they perform. Creating room for advancement will help refugees increase their professional skills and build their employment history. While not all in-camp interventions can incorporate this goal, camp-based workers can be encouraged to take greater responsibility and envision ways that they can advance their skills or gain experience. Develop an Exit Strategy Agencies must plan program phase-out in a gradual manner that does not leave displaced workers vulnerable. While these interventions are not meant to be a permanent or even a semi-permanent solution, it can be damaging
99
to participants livelihoods if their only source of income ends abruptly. Planning for alternative programming upon termination, a release of savings or other alternatives for supporting participants economic needs upon program completion should be an integral part of the program design phase. Gender-based Considerations When employing workers from the displaced population, it is important to take into consideration the particular needs of women, especially with regard to program accessibility. Many women have skills for which they are not compensated and which are therefore overlooked. For example, womens cooking, cleaning and child care skills can translate into more formal positions that might include cooks, cleaners, child care providers and nurses aides within the camp. Some women are unable to participate in campbased interventions due to household responsibilities. As with other livelihood interventions, programs should allow for the inclusion and recruitment of women as relief substitution and incentive workers. Womens participation can be increased by providing child care or offering exible working hours, including evening positions for women who can work later in the day.6 Throughout the process of the intervention, it is essential to consider the inclusion of women and to examine intervention possibilities and consequences through a gender lens.
CASE STUDY Relief Substitution Work for Refugee Women in Thailand7
The Karen Womens Organisation8 in Thailand is funded by the Thai-Burma Border Consortium (TBBC) to produce longyis (sarongs), which are purchased by TBBC and distributed to all pregnant women. All camp residents also receive a longyi every two years. The longyis are woven on small looms by refugee women in their shelters, which allows them to work from home and attend to their children. The women who weave the longyis are paid on a piece-rate basis. The project puts money directly into the hands of refugees, rather than outside vendors, reinforces traditional skills (weaving) and primarily targets women.
ENABLING ENVIRONMENTS FOR IN-CAMP LIVELIHOODS PROGRAMMING

Relief substitution and incentive work programs can only function if aid agencies are willing to support the initiatives and pay for goods and services from displaced groups. Relief substitution is only recommended as an intervention when access to local markets is highly restricted because it is dependent upon the demand created by aid agencies and does not necessarily reect the demands of the wider local and regional communities. Once aid agencies terminate program support or the need for goods and services has been saturated, the in-camp market will cease to exist.
100
PRELIMINARY STEPS
Before developing in-camp livelihood interventions, it is important to conduct preliminary research that will gauge the needed goods and services within the camp setting that can both fulll the needs of the relief agencies and also build upon and develop the skills of displaced workers.
negative impacts? Consider barriers to the participation of women or cultural groups, the prohibition of men and women working together and possible environmental damage. Are there government restrictions on displaced groups working? Are there restrictive policies or regulations that limit the work that can be conducted in and outside of the camp setting? Can relief agencies provide relief substitution and incentive work within the camp without causing tension with the host government? Is there adequate infrastructure within the camp or does this need to be developed? Can roads, schools, health clinics and water treatment and sewage systems be built, and agricultural or pastoral areas primed for the needs of the camp residents? Are women and vulnerable groups able to perform work on needed in-camp livelihood projects? How will an intervention contribute to the ability of community members to address their needs? How will an intervention affect the surrounding community? How can the community be included? Skills Assessment Before designing and implementing an intervention, it is necessary to carry out a skills inventory of potential participants. Interventions that build upon pre-existing skills are benecial in a few ways: there is no need to train participants in required skills; it is more cost-effective than providing training; and it broadens participants ability and experience, which can provide for long-term economic security once outside of the camp. Some questions for a skills assessment include: What are potential participants interested in? What skills do displaced people within the camp already possess?
ASSESSMENTS
Market Needs Assessment Because the market demands are based upon aid agencies needs, the required market assessment is much shorter than assessments that seek to consider wider market opportunities. Some questions to consider in a market needs assessment include: What goods or services do households regularly use? Could they be provided or produced by refugees/IDPs? What are the necessary goods already provided by aid agencies within the camp? Could they be provided or produced by refugees/IDPs? Are there local markets at which the agency can purchase the materials and/or inputs needed to produce these goods? Do logistical concerns or security threats prevent access to these markets? What other relief and/or development initiatives are in progress in the camp? What are some ways community members are earning income? What skills are they using to do so? What projects, initiatives or agencies within the camp need labor that refugees/IDPs could provide? What skills are needed? What social, cultural or environmental factors inuence the in-camp economy and may have
101
How can an intervention utilize the skills the community members already possess? What skills can be enhanced through additional training? What types of work are displaced individuals willing to perform? Assessing Conict and Crisis It is important to conduct a conict analysis or gauge the situation following a natural disaster so as to understand the context, understand any instability, anticipate unintended consequences and avoid contributing to a potential conict economy with the livelihood interventions. Some questions to ask include: What role does conict have on economic activities locally and in the camp? How are people vulnerable as a result of the crisis? How might their participation in camp-based interventions compromise or improve their security? Does the conict or the effects of the disaster restrict people to safe areas, limiting the market or the introduction of supplies? Can the production of goods or the provision of services by the displaced community endanger them or cause vulnerability? If so, how can agencies minimize these risks?
DESIGN
IDENTIFYING HOST GOVERNMENT POLICIES
While it is essential to understand the laws and policies that host governments have that may restrict refugees and IDPs from working or moving freely, relief substitution and incentive work are ideal for such restrictive environments. Before implementing an in-camp livelihoods intervention, be sure to: contact the appropriate government entities and/ or the UN High Commissioner for Refugees (UNHCR) to determine policies and laws regarding the employment of non-citizens and/or displaced groups; determine whether displaced groups are allowed to conduct relief substitution and/or incentive work inside camp settings, and whether there are any specic restrictions; determine whether there is a limit on how much displaced workers can be paid for relief substitution and incentive work. Because it is fairly common for host governments to place restrictions on the work of displaced people, refugees prospects for livelihoods development are heavily reliant on advocacy by practitioners and aid agencies. One possibility to consider is appealing for limited work permits such as those that allow refugees, even if they cannot work, to market their products outside the camp through intermediaries. (See Working with Host Governments chapter.)
102
SELECTING AND DESIGNING AN INTERVENTION

Once it has been determined whether relief substitution or incentive work is the most appropriate intervention, practitioners can tailor the design of their program. Program design should begin with speaking with aid agency personnel to determine what goods and/or services are lacking in the refugee and IDP camps, as well as those that are purchased and supplied from outside the camp. With this information, practitioners can explore constraints and opportunities in obtaining necessary supplies, labor and equipment from within the camp as well as the ways to best utilize the skills of displaced workers.
CASE STUDY Bhutanese Refugees Produce Items for In-Camp Distribution in Nepal9
In Bhutanese refugee camps in Nepal, the UN High Commissioner for Refugees (UNHCR) supports a number of relief substitution projects, managed through refugee groups such as the Bhutanese Womens Forum.10 Participating refugees producing goods are paid on a piece-rate basis, rather than UNHCR paying to import the same items from outside of the camp. Sanitary materials for women are produced by refugees, in which they dye, dry, weave and cut material for womens sanitary cloth, which is purchased by UNHCR and distributed to all females between the ages of 15 and 49.11 Other goods produced for in-camp distribution include chalk for schools and laundry soap for refugee households. It should be noted that refugee women in Ethiopia, and many other settings, have expressed frustration with the use of cloth sanitary napkins. Issues with supply and comfort have led groups of refugee women in Ethiopia to repeatedly request improved feminine products. As a result, UNHCR will make this accommodation and switch to disposable sanitary napkin distribution.12 Such trends are worth noting, as they may restrict in-camp livelihood opportunities and create a need for the importation of certain goods.
103
SELECTION OF PARTICIPANTS
CASE STUDY
The selection of participants for in-camp livelihood interventions can be adapted based upon the unique needs of communities. The main criteria should be the ability and motivation of participants to engage successfully with the program. Identifying program participants should entail the following: Ensure that the recruitment process is fair and transparent by posting job openings throughout the camp. Ensure the inclusion of women or vulnerable groups, who can be identied through referrals or liaising with agency units that deal with gender-based violence or special needs. Ensure that there is a formal application process that will help to circumvent exploitation, favoritism and nepotism. Make sure that applicants and potential program participants understand time constraints, work duties, hiring and ring procedures and condential complaint mechanisms. Determine whether participants have any previous work experience that is sufcient for them to begin working on projects. Determine how non-monetized/non-compensated skillssuch as child care, cleaning, cooking, sewing and care giving for those with medical concerns and disabilitiescan be considered and built upon as transferable skills. Identify specic considerations that can allow for people with special needs to be included in programs.
A Missed Opportunity in Southern Sudan for Using Returnees Non-monetized Skills13
In Southern Sudan, the service sector did not take advantage of the skills of the local returnee population. Instead, traders and labor markets were dominated by Ugandan, Kenyan and northern Sudanese workers. Local guest camps that housed NGO staff employed Kenyans and Ugandans as cooks, waiters, hotel staff and cleaners, who prepared and served food, cleaned, took reservations, set up tents and provided general support. Had the Southern Sudanese returnees non-monetized skills, such as preparing meals, maintaining homes and making small repairs in the guest camps, been utilized, these displaced groups would have had an opportunity to earn a living and develop their self-reliance.14
104
Inclusion of Vulnerable Groups It is best for social cohesion of vulnerable groupssuch as women, youth, older people, people with disabilities, people living with infectious diseases and ex-combatantsare selected along with experienced displaced workers to ensure there is equal access to a program. However, simply providing vulnerable groups with ways to earn an income may not be sufcient in building their self-reliance because of socio-cultural restrictions. Special attention should be paid to the barriers that vulnerable groups face, such as discrimination and stigma, and the ways that such barriers can be overcome with skills development. Practitioners should identify how women and vulnerable groups can be encouraged to pursue in-camp livelihood opportunities and identify activities that utilize their skills. It is important to identify the main obstacles to program inclusion and address them through modications in program access and design.
Concerns Related to Targeting Groups When a particular population is targeted for inclusion in a program, conict or tension can arise between those who are selected and those who are not. One remedy for this is to target sectors instead. By targeting a sector rather than a population, practitioners can focus on the skills that match the enterprise and include individuals and groups on that basis. For example, if a program targets road reconstruction as a sector, it may attract more able-bodied men and male youth than women, older people or people with disabilities. In contrast, targeting craft production as a sector is likely to reach women, youth, older people and people with disabilities.16 Even then, however, care must be taken to avoid assigning particular groups to so-called traditional or stereotypical roles. Selection of enterprises for program participants must be viewed through a lens of sensitivity for gender, age and ability.
CASE STUDY NGOs in Nepal and Thailand Provide Work for Refugees with Disabilities15
Refugees with disabilities have found work with aid agencies, including as teachers aides for special needs students, rehabilitation workers and disability program managers. Caritas Nepal and ZOA Refugee Care in Thailand each have progressive afrmative action hiring policies for refugees with disabilities.
105
OUTLINING RIGHTS AND RESPONSIBILITIES

It is essential to provide participants with information related to their rights and responsibilities, hiring and ring policies and complaints procedures. Displaced groups are sometimes unfamiliar with their rights and information that can help them when they encounter difculty. Be sure to: determine the relief organizations policies related to relief substitution workers and incentive staff; determine the related policies of other organizations in the region; work to harmonize relief substitution and incentive worker policies across the organizations units and with other organizations in the region; ensure that the selection process is clear and well-known to the organizations staff and participants; incorporate policies against discrimination, sexual harassment, abuse and exploitation; implement condential complaints procedures.
Sample Checklist Adapted from the International Rescue Committees Mandatory Reporting Policies17
Prohibit sexual relations between staff and participants. Establish different considerations for staff hired from the participant community when the relations are consensual. Prohibit sexual activity with children under the age of 18 even if the local age of majority or age of consent is younger than 18. Do not recruit participants to work for staff in a personal capacity. Prohibit verbal, non-verbal and physical harassment perpetrated by staff. Mandatory Reporting
Providing information about responsibilities also protects participants by helping them to understand the potentially short-term nature of relief substitution and incentive work. This allows them to be more nancially prepared and sets realistic expectations.
106
CASE STUDY Leadership Among IRC and Refugee Incentive Workers in Kakuma Refugee Camp, Kenya18
In late 1999, poor lines of communication led the incentive workers of all organizations in the Kakuma refugee camp to hold a strike against their employers due to inadequate pay, lack of management and leadership opportunities and perceived discrimination by humanitarian staff against refugees.19 Recognizing that incentive workers capabilities and contributions were underutilized and unrecognized, the International Rescue Committee (IRC) responded with the establishment of a Counterpart Management System (CMS). The IRCs CMS allows refugees to work hand-in-hand with all staff program managers. Counterpart managers, who are refugee workers, are not subordinate to program managers; rather, they are partners with them. Counterpart managers play a dual role: they represent the participants and also speak on behalf of the agency. This system allows for greater transparency of the program and greater participation of refugees. By 2003, all IRC programs had integrated incentive workers into the management process. Counterpart managers participate in the Kakuma annual program planning process and attend the Kakuma management meetings on a biweekly basis. They also play a role in reporting to refugee community leaders in quarterly meetings; are in charge of the program that they work in when the program manager is absent; and are part of all IRC program design trainings and capacity-building sessions. Their job responsibilities include supervising staff; coordinating meetings; providing input during budget and proposal writing; coordinating with heads of departments and community leaders; training and recruiting staff; mobilizing the community for program activities; keeping program, correspondence and staff performance records; and liaising with other organizations. Because counterpart managers are usually involved with the program for longer than IRC program managers, they tend to develop strong management skills and longer institutional memory, and are therefore more in tune with culturally appropriate program implementation.
107
AGREEMENTS BETWEEN RELIEF AGENCIES AND RELIEF SUBSTITUTION AND INCENTIVE WORKERS
It is imperative that contracts or agreements are stipulated between relief agencies and employed refugee and IDP workers to ensure that the terms are agreed upon and obligations are met. Contracts may be required for new goods and/or services and should indicate, in the case of goods, the quality and quantity of the goods produced, the price and the location and times for delivery.20 UNHCR recommends putting production monitoring and distribution systems in place and encouraging individual production that suits individuals household responsibilities.21
Within the program budget, how many relief substitution and incentive workers can be hired? Are other agencies in the area providing similar levels of compensation? Can the agency establish programs that would supplement monetary compensation and promote more sustainable livelihoods, such as a savings program?
CASE STUDY Assessing Compensation for Incentive Work in Dadaab and Kakuma Refugee Camps23
DETERMINING COMPENSATION
Before hiring relief substitution and incentive workers, it is necessary to determine how the workers will be compensated for the goods they produce and/or the labor they provide. All payments should be based upon quality control. For all production work, a piece-rate [basis] should be adopted, while salaried staff should receive set wages, and bonuses for increased production or increased responsibilities.22 Local labor lawsincluding any governing minimum wageneed to be identied, and a formula must be designed and agreed upon. Such a formula would assess minimum wage minus the provision of food and housing, which is already provided to refugees and IDPs in camp settings. Questions to consider include: How much money is available for refugee and IDP workers compensation?
A joint 2005 International Labour Organization (ILO)UNHCR report found that in the Dadaab and Kakuma refugee camps in Kenya, incentive work is the only form of formalised work for [Somali, Ethiopian, Sudanese and other] refugees in the camp environment.24 However, incentive work does not provide the protective means inherent to formal labour contracts, but offers more stability and protection than work in the informal economy.25 For example, refugee workers conducting the same work as Kenyan workerssuch as teachersmay earn approximately one-fourth of the salary that Kenyan workers receive, even if they supervise the work of the Kenyan nationals. While relief agencies are unable to formally hire refugees in restrictive host country environments, ILO is concerned about the very low level of incentives paid in comparison to salary standards for national staff, particularly as agencies, always under funding constraints, use this situation and have an abundance of motivated and in part qualied workers at their easy disposal.26
108
IMPLEMENTATION
ONGOING MONITORING
Ongoing monitoring mechanisms must be in place to assess program impact and effectiveness. This ensures that protections are in place and that program staff and relief substitution and incentive workers follow policies and meet their respective responsibilities. Practitioners should pay particular attention to changes in government policy, infrastructure, logistics and conict or instability. Changes in any of these elements could result in opportunities to engage participants in enterprises that are based on the local market rather than simply the demands of the humanitarian community. As such, observation of potential postdisplacement or non-camp livelihood opportunities should be noted, as this may help to facilitate skills development and the building of transferable skills. The following monitoring measures are helpful in the implementation phase of the program: following up with relief substitution and incentive workers to ensure that there is protection from sexual harassment, abuse and discrimination in the working environment; incorporating annual workshops that train staff in recognizing and reporting any abuses or discrimination on the grounds of race, gender, age, religion or disability; creating an open line of communication between workers and their employers by carrying out surveys to evaluate program success based upon participants feedback; ensuring the participation of women, youth, older people and people with disabilities in these evaluations;
ensuring that the agencys policies concerning workers compensation and hiring/ring are transparent, available and understood among workers; assessing changes in the economy that can enable participants to address difculties in maintaining their livelihoods at the completion of in-camp interventions; identifying areas where programming can connect participants to other livelihood interventions.
COORDINATION AMONG PARTNERS

The implementing organization must coordinate its policies among all of its units, as well as with other agencies working on in-camp interventions. Coordination can facilitate program transparency, avoid duplication and reduce costs. It can facilitate a closer relationship in and among organizations, and can help obtain information about and address instances of abuse, harassment and discrimination. There must be coordination among and within agencies when: establishing policies related to workers rights; carrying out a skills inventory within the community; identifying demand for goods and labor; creating adaptive and responsive programs; making programs culturally appropriate; making programs gender-, age- and ability-aware; determining compensation; harmonizing wages; attempting to build on existing skills and developing transferable skills and opportunities for increased responsibility or advancement;
109
COMMON CHALLENGES AND LESSONS

Although relief substitution and incentive work interventions are designed to allow refugees and IDPs to work within camp settings, some challenges can arise. Some of the most common include: compensating displaced workers with incentive amounts that are both fair and sustainable; discrepancies between available skills and skills needed; in-camp interventions employing only a fraction of the displaced population, which can cause tension within the refugee community; competition between various agencies to hire the best qualied among the displaced; following up with participants to determine the program impact; developing an adequate exit strategy; securing adequate funding to cover program costs and wages over the course of the intervention; quality control mechanisms may be time- and labor-intensive.
assessment, the selection of participants and evaluation; altering the program to reect new opportunities in the local market or changes to host government policy; improved coordination and joint efforts by agencies to offer opportunities for displaced people to develop their skills and capacities.

In-camp livelihood interventions must have an exit strategy to ensure the stability of workers, as these interventions are often short-term in nature and there may be no possibility of continuing once the need has been fullled or the aid agencies depart. Many relief substitution and incentive work programs run out of funding and abruptly end their activities. Therefore, it is essential to ensure that transitional activities and a smooth exit strategy are put into place at the start of these interventions. Determining the next steps and ways in which to transition relief substitution and incentive workers from one type of work or program to another can reduce the likelihood of vulnerability among participants. An exit strategy should build upon the results of ongoing monitoring and take into consideration the following factors: the participation of participants in the development of an exit strategy; sources of funding for the program; allowing for savings opportunities; ensuring continued compensation for workers, albeit by other means, such as including them in other income generation programs, referral to other types of employment; potential occupations where participants skills can be applied after the end of the program;
ADJUSTING THE INTERVENTION

The process of ongoing monitoring can help to clarify negative effects and prevent unintended consequences. Adjustments may be necessary to address any concerns. Successful programs have made adjustments by: developing additional guidelines to address negative issues; assessing the market on a more frequent basis; assessing and matching the market price of goods being produced in order not to ood and disrupt the local market; involving the community in the process of
110
coordination with different governmental, nongovernmental and international organizations so refugee and IDP workers have options and opportunities following incentive work or relief substitution interventions; ensuring that transferable skills can be developed for alternative livelihoods once the program ends.
CASE STUDY Program Failure Due to Lack of Monitoring and/or an Exit Strategy27
In the Democratic Republic of Congo, an NGO set up a program for incentive workers where participants were trained and placed in teaching positions. However, program funding was available only on a one-year cycle. The organization did not have an exit strategy for the program and therefore could not pay for teachers salaries after the year ended. The responsibility to pay refugee teachers salaries was then transferred to the local Parent Teacher Association (PTA), which was unprepared and without resources to pay these costs.
Individual workers may eventually be able to provide their goods to refugees in the camp and sell to the local community rather than selling their goods to relief agencies for distribution. UNHCR recommends: With increasing self-reliance, sales to agencies will decrease and producers will supply to individual refugees/returnees or local communities. It is vital therefore, that sales prices are competitive. Phasing out agency purchases and distributions will need planning to avoid unnecessary and costly stockpiling of unwanted goods. The gradual decrease of agency purchases, and increasing sales on the local market, will help make businesses (and services provided) sustainable.28
111
EVALUATION
Since aid agencies demands for goods and services are not sustainable, evaluations should focus on measuring program success and impact and identifying areas for improvement that can inform continued programming or improve exit strategies. Program participants and local stakeholders should participate in the evaluation process.

UNHCR. Annex 1.16: Relief Substitution. Appendix One, in Handbook for Self-reliance, (August 2005). www.unhcr.org/publ/PUBL/44bf40cc2.html.
MEASURING SUCCESS Below are some indicators to measure success: whether the intervention increased participants household income levels; investment in income-generating activities for long-term livelihoods security; accumulation of assets or savings; reduced dependency on distributions and hand-outs; reduced vulnerability; increased nutritional intake within the household; improved standard of living; the inclusion of women and vulnerable groups; skills development; participants overall perception of and satisfaction with the program; whether the program facilitated the repatriation, integration or resettlement of displaced participants; improved community and/or inter-ethnic relations;
NOTES
1 See UNHCR and ILO, Self-reliance and Sustainable Livelihoods for Refugees in Dadaab and Kakuma Camps, Final Report, ILO-UNHCR Partnership through Technical Cooperation, Multi-Bilateral Programme of Technical Cooperation (September 2005): pp. 29-30, www.unhcr.org. UNHCR, Annex 1.16: Relief Substitution, Appendix One, in Handbook for Self-reliance (August 2005): p. 162, www.unhcr.org/publ/PUBL/44bf40cc2.html. Tom Baldwin, The race before the Rains, Oxfam GB website, www.oxfam.org.uk/applications/blogs/kenyacrisis/2008/02/the_race_before_the_rains.html (accessed January 2009). Ibid. See World Food Program, WFP/UNHCR/GOK/DONORS, Joint Assessment Mission, Kenya, 18 September-6 October 2006. documents.wfp.org/stellent/groups/public/ documents/ena/wfp121116.pdf. See Womens Commission for Refugee Women and Children, Rebuilding Lives: Refugee Economic Opportunities in a New Land (August 2007), www.womenscommission. org/pdf/us_sandiego.pdf. Interview with Dale Buscher, Womens Refugee Commission, January 6, 2009. See also, Womens Commission for Refugee Women and Children, We Want to Work: Providing Livelihood Opportunities for Refugees in Thailand (September 2006) www.womenscommission.org/pdf/Th_deleg.pdf. Karen Womens Organisation, www.karenwomen.org. Womens Commission for Refugee Women and Children, Dont Call it Shangri-La: Economic Programs for Displaced Populations in Nepal (May 2008): p. 10, www.womenscommission.org/special/nepal.php. Ibid.
4 5
8 9
10
112
11 12 13
Ibid. Interview with Lauren Heller, Womens Refugee Commission, December 17, 2008. See Womens Commission for Refugee Women and Children, From the Ground Up: Education and Livelihoods in Southern Sudan (January 2007): p. 11, www.womenscommission.org/pdf/sd_ground.pdf. Interview with Jenny Perlman Robinson, Womens Refugee Commission, December 19, 2007. Womens Commission for Refugee Women and Children, Disabilities among Refugees and Conict-affected Populations (June 2008): p. 28, www.womenscommission.org/pdf/ disab_fulll_report.pdf. See Mary McVay, BDS in Conict Environments Neglected Potential? The SEEP Network (October 2004), www.micronancegateway.org/les/22781_SEEP_BDS_ in_Conict.doc. International Rescue Committee, Mandatory Reporting Policy, Employee Handbook (April 2004). International Rescue Committee, Counterpart Management System. Ibid. See note 2. Ibid., pp. 162-163. Ibid. See note 1, pp. 27-29. Ibid., p. 27. Ibid., p. 28. Ibid. Interview with Aaron Evan Rippenkroeger, International Rescue Committee, October 17, 2007. See note 2.
14 15
16
17 18 19 20 21 22 23 24 25 26 27 28
113
Supporting Agrarian Interventions

INTRODUCTION
This chapter addresses agrarian livelihood interventions, including crop production and the raising of livestock. For displaced people, there are a number of constraints for conducting agrarian livelihood activities: instability in post-conict or post-disaster situations; the common lack of access to natural resources, such as land and water; and limited access to markets and necessary inputs, including tools, equipment, seeds and livestock. Refugee and internally displaced person (IDP) camps may be deliberately placed on unproductive land without sufcient water resources in order to minimize tensions with local communities over the use of scarce resources. Due to limited access to land, inadequate space, few natural resources and constraints in skills and knowledge, displaced persons agricultural activities are generally small-scale, low-input and often unsustainable. While some form of crop production, such as backyard gardening small-scale gardening for subsistence use can be practiced in many displacement contexts, the placement of refugee and IDP camps and settlements often makes it impossible to practice traditional agricultural activities. Further, while displaced peoples agrarian skills may have been suitable for their home environment, they may be inappropriate in their displacement situation. Inadequate inputs, such as seeds, tools and equipment, uncertainty about investing time and resources in an unpredictable environment and unsuitable varieties of crops can mean that agriculture is limited to household-level efforts to use traditional practices in unfamiliar and poor conditions. Without the necessary inputs, the scope for improving practices can be limited, land use unsustainable and environmental degradation increased.1 Instead of producing for the demands of the market, displaced people and service providers often must seek out markets for what is currently being produced. This can lead to growers being burdened with unwanted produce they are forced to sell cheaply because of a lack of market interest.
114
SUPPORTING AGRARIAN INTERVENTIONS
In many cases, the yields of agrarian activities are consumed rather than sold, supplementing food aid or being the sole nutritional source for households. Due to the diverse livelihood strategies employed by displaced people, agrarian activities may supplement other income generation activities or account for just a small portion of their income base. Many displaced people engaged in agrarian activities work as day laborers, planting and harvesting for wages or in-kind payments for local farmers. Displaced people may be uninterested in agrarian livelihoods, and those who expect to be resettled in an urban area or who believe that urban areas hold more opportunities may be reluctant to return to or develop agricultural skills. Successful interventions must be market-driven, consider the specic characteristics of the displacement situation, build on existing practices and skills and consider the short- and long-term impacts of the intervention. Implementing agencies should secure the essential assets displaced participants need in order to engage successfully in agrarian interventions: land, security, tools, equipment, seeds, livestock and other needed inputs. Advocates for agrarian interventions should not simply focus on micro-level production, but also seek ways to support mesa- (community-) and macro-level production. Interventions should be strengthened not only in terms of production, but post-harvest techniques should be incorporated to add value to products, thereby increasing producers earning potential. Nongovernmental organizations (NGOs) should build the self-reliance capacities and strategies of displaced participants in order to reduce their dependency on humanitarian aid, the delivery of which can be unpredictable and unreliable. This chapter primarily draws on experience from agriculture and livestock interventions for displaced communities, but also discusses less-common
possible interventions, such as agroforestry, aquaculture and beekeeping. The chapter provides general guidelines that can be used to develop agricultural and pastoral interventions. Resources are provided at the end of this chapter for detailed guidance for specic interventions.
KEY LEARNING POINTS

Without secure land tenure, agrarian interventions are likely to be unsustainable, and displaced people will have little incentive to properly manage and invest time, effort and resources. Agricultural practices rely on accumulated knowledge and experience, which can prevent inappropriate and poor practices. Understanding local conditions, such as soil, rainfall patterns and climatic variations, local infestations and common livestock diseases, may require time and the support of specialists. As a result of multiple constraints, a single agrarian intervention should not be the only source of livelihoods for displaced populations. It is crucial to assist displaced populations to diversify their livelihood activities so they are better equipped to cope with shocks and stress, such as drought, infestations and livestock diseases. Interventions should improve upon or increase products already being cultivated in targeted areas through value chain analysis, including post-harvest technology, improved processing and/or assistance gaining value-added product certications. The security and protection of displaced people, including women and vulnerable groups, should be of paramount concern. Alleviating environmental impacts and incorporating sustainable practices must also be incorporated into agrarian interventions.
115
ESSENTIAL ELEMENTS
Denitions Agroforestry is dened by the World Agroforestry Centre as a dynamic, ecologically based, natural resources management system that, through the integration of trees on farms and in the agricultural landscape, diversies and sustains production.2 Aquaculture is dened by the Food and Agriculture Organization (FAO) as the farming of aquatic organisms in inland and coastal areas, involving intervention in the rearing process to enhance production and the individual or corporate ownership of the stock being cultivated.3 Extension workers are individualseither external experts, locals or refugeeswho are employed by the government or aid agencies to provide advice, plans, training, inputs and support to farmers or community groups.4 Land tenure determines land and natural resources ownership, and access and land use rights. Livestock are dened by the UN High Commissioner for Refugees (UNHCR) as animals kept for domestic use, such as cattle, horses, goats and poultry.5 Pastoralism is the use of extensive grazing in rangelands for livestock production.6 Post-harvest technologies are processing techniques that add value to raw products and lead to increased prots, such as rening, preserving, drying, distilling and extracting the harvested goods. Such processing allows procedures to differentiate their agricultural products and permit them to sell their products in the off-season, when higher prices can be earned and products may be in greater demand, reducing dependence on immediate harvest earnings. Value chain analysis is a market analysis tool used to assess how products gain value as they pass through the range of activities needed to bring a product to market.
116
ESSENTIAL ELEMENTS OF AGRARIAN LIVELIHOOD INTERVENTIONS

In order to be successful, agrarian interventions for displaced people must include these essential elements: Ensure the Inclusion of Participants and the Community Agrarian livelihood interventionsboth agricultural and pastoralshould involve program participants and members of the community in all stagesassessment, planning, design and evaluationto ensure that their knowledge is utilized and their needs and goals are understood. Ensure that Interventions Are Market Demand-Driven Too often, agrarian interventions have been driven by supply, for example, the distribution of environmentally inappropriate seeds, simply because they are available. Market assessments help to determine what products are in high demand and can identify what roles displaced people may be able to ll. Promote Market Linkages Building linkages between market actors (sellers, buyers, traders) at different stages in the value chain is critical for ensuring a successful intervention. Programs should facilitate access to necessary inputs or to suppliers who provide inputs, such as tools and equipment or seeds, fertilizer and/or livestock feed. Interventions should also promote linkages among farmers, agro-processors and traders who will process or sell their products in larger, regional and national markets. Such linkages should add value and elongate value chains for all parties.
Access to Credit and Financial Services Linking participants with access to credit, including subsidized credit, may be necessary for successful enterprises, particularly for vulnerable groups. The provision of credit, as well as a safe place for participants to save, can be secured through linkages with local service providers and nancial institutions. Adopt a Holistic Approach Agrarian interventions should be designed in light of the diverse strategies that people employ in order to maintain their livelihoods. Programs are more effective when coupled with other livelihood programs or necessary skills training. A challenge with agrarian livelihood interventions is to enable the displaced to realize reasonably quick gains while enhancing their capacity to invest in long-term livelihood strategies. Programs should have short-term, immediate impact while also planning for longer-term sustainability. Enable Skills Development Agrarian interventions should build upon existing skills and assets, and develop new skills that participants can use in the long term or transfer to other occupations for their livelihoods security. Where existing skills are inappropriate for agrarian livelihoods in displacement situations, formal or informal training may be necessary. Further, it is important to identify what training women might need when introducing new techniques, crops or livestock that have traditionally been male-dominated. Participants should be prepared for agrarian livelihoods by receiving employment readiness training in basic nancial education, literacy and numeracy skills, which are essential to ensuring that the displaced are treated fairly by wholesalers and in the market. In Uganda, for example,
117
farmers knew that their cotton was worth a certain percent more when it was organic, but due to a lack of math skills, had difculty calculating the exact amount by which prices should increase. (See Training and Placement Programs chapter.) Mitigate Negative Environmental Impacts While developing environmentally sustainable agrarian practices may require more initial planning than practices that provide a rapid return, lessening any negative ecological impacts will reduce further strains on local resources. Include the Host Population Interventions should not cause competition between host and displaced communities; instead, they should bring disparate groups together for mutual benet. Because agrarian programs use the land and natural resources of the host community, it is particularly important to include this group in an intervention. Including both the displaced and host communities may help to reduce hostility towards the displaced; provide income for local communities; and improve the sustainability of the intervention due to the introduction of local knowledge and a sense of community ownership. Adopt a Gender-sensitive Approach Successful programs build upon womens existing roles and work. In order to design an agrarian intervention that has a positive impact on displaced womens livelihoods, women must rst be asked about their role in agrarian activities. In many cultures, access to land is gender differentiated, and in displacement contexts women may have less access to both land and inputs for agricultural and pastoral activities than men. While in many societies women may be doing a larger share of agrarian work than men, many interventions target men, which can have
consequences for womens livelihoods and food security within their households. Interventions that target women need to recognize their often already overwhelming workloads and household responsibilities, and try to avoid imposing further burdens on women. When targeting displaced women for programming, practitioners should be aware of perceptions of unfairness among men and the host community that could create vulnerability for female participants. Women who are generating income may be at additional risk for domestic or sexual and gender-based violence if traditional gender roles are upended. Include Vulnerable Groups Agrarian interventions should include vulnerable groups that target not only women but also youth, older people, people with disabilities or living with infectious diseases, and ex-combatants. It is important to determine how any special needs can be addressed and provide access and equipment that can assist the participation of these groups.
118
CONSIDERATIONS FOR AGRARIAN LIVELIHOODS IN DISPLACEMENT CONTEXTS

POST-CONFLICT OR CONFLICT-AFFECTED ENVIRONMENTS
The objective of agrarian support in states affected by, or emerging from, conict should protect, promote or bolster existing livelihood strategies, in addition to enhancing consumption, markets and production. Interventions should facilitate the transition from supply-led programming to establishing sustainable, market-driven livelihood approaches. Agrarian interventions must take a proactive role and build linkages between local producers and other actors on the value chain. It is important to ensure that the livelihood activities of displaced groups promote peace building and are not directly or indirectly supporting conict economies or fueling conict and unrest. The stabilization of livelihoods presents people with viable means of earning an income and can serve as an entry point for building cooperation and trust. As trust is a crucial factor for agricultural production and marketing, interventions should strive to develop cooperation between various actors. In many circumstances, economic incentives outweigh mistrust and can serve as a catalyst for cooperation.
CASE STUDY Lost Trust between Value Chain Actors in Kosovo7
The breakdown of trust in Kosovo and the resulting loss of links between actors who previously cooperated reect the deterioration of relationships in the wider conict. Just after the 1999 conict, most dairy cattle were located in Kosovar Serb villages, while most of the dairy-processing facilities were in Kosovar Albanian villages. Due to a lack of storage facilities, Kosovar Serb farmers had to wait outside their villages and sell their raw milk at below-market prices to Kosovar Albanian processors, who argued that the milk was watered down. Both parties were afraid to enter each others villages to discuss commercial grievances. Mercy Corps played an intermediary role to alleviate the tension by installing secure, hygienic milk-collection storage centers in Kosovar Serb villages where Kosovar Albanian processors could safely purchase the raw milk, preventing Kosovar Serb farmers from having to wait at the edge of their villages. The milk fat content was measured with special equipment and stored at the correct temperatures, which enabled processors to both conrm the fat content of the milk and collect it at their convenience. These steps enabled both groups to conrm quality and negotiate fair prices.
119
CASE STUDY Aligning Business and Peace Agendas to Promote Agricultural Development in Colombia8
Compaa Envasadora del Atlntico (CEA), a Colombian family-owned company that exports fruit pulp to 39 countries, was faced with challenges when it decided to produce passion fruit pulp in response to high demand from international clients. The armed conict in Colombia affects both security and the political economy, and it was difcult to nd local farmers to grow the fruit on coastal land traditionally used for coca production. Interested farmers needed to demonstrate they could obtain credit, meet technical requirements and deliver the needed tonnage on time. CEA invested in training farmers in agricultural techniques and business skills. However, it was difcult for CEA to interact with local communities because of corruption, the heavy presence of guerrillas and paramilitaries in the region, the lack of a viable state presence and distrust following decades of armed conict. CEA therefore approached the UN Development Programme (UNDP), and partnered on an illegal crop prevention project that complemented CEAs business interests and helped UNDP to promote legal economic development among farmers formerly involved in the drug trade. International Alert reports: UNDPs objective was to foster legal economic development, involving private companies, which would have an impact on conict by creating alternative livelihoods for farmers who had been lured into the drug trade. UNDP had designed a programme that offered growers training on how to organise in associations with the goal of maximising their prots and promoting social capital; workshops on business skills; and a guaranteed buyer of their produce over a number of years.9 CEA felt that UNDP could provide credibility in helping CEA to build trust between growers and local communities, and invited UNDP to act as a duciary and to administer the loans made to the associations.10 The project also received technical assistance, processing plant design and managerial services from a local USAID subcontractor.11 With UNDP mediation, the project has created agribusiness associations in vulnerable areas that have been, or could have otherwise become, sites for narcotics production. CEA is now a participating company in the European Unions Peace Laboratory initiative, which works toward peace building and socioeconomic development in Colombia.12
120
LAND Use of and access to land is a fundamental issue for livelihood interventions during displacement, as well as when refugees return to their home communities. During displacement, the common lack of access to productive land severely curtails agricultural interventions and the ability of populations to become self-reliant. During return, re-establishing farming practices can be a way for communities in post-crisis to recover long-term economic stability. The access, ownership and use of land have social, economic and political importance in many postconict settings, particularly when forced displacement has been used as a strategy of war. The onset of peace in post-conict environmentsoften characterized by inadequate policies, uncertain leadership and failure of the rule of lawcan be dangerous due to a sharp rise in property disputes, which often develop with the return of displaced groups.13 Land conicts often result in complex emergencies in agrarian societies where land is central to livelihoods. Secondary conicts can emerge if land is occupied opportunistically, particularly in protracted displacement situations, resulting in competing land claims.14 Considerations of land tenure and land use rights are an inevitable issue in all displacement and recovery contexts, but are all too often ignored or insufciently addressed. According to International Alert, humanitarian agencies often neglect land issues on the basis that they are too complex and politically sensitive, and lie within the mandate of development agencies.15 Often, there is a form of selective nostalgia, whereby humanitarian agencies unrealistically attempt to return to the way things were despite signicant and potentially undesirable changes and transitions in countries or regions of origin.16
The International Committee of the Red Cross (ICRC) has highlighted some key issues, as well as dilemmas, for humanitarian agencies around how to design programs, which consider access to land, its use, management, ownership and transfer:17 Take precautions to ensure programs do not give approvalor are perceived as giving approvalto the appropriation of land which is deemed to belong to other people. Use extreme caution when providing assistance to displaced communities temporarily settled on land claimed by local populations. It may be inappropriate to provide irrigation equipment or seeds, or encourage agroforestry if plowing or planting trees is considered to be appropriating the land. Assess the potential risk of the humanitarian agency being accused of failing to maintain neutrality by following one set of land rules, such as adhering to the rules of just one group of cultivators or pastoralists, or one ethnic group. Be aware of customary/traditional law on land ownership and land use, and changes in law by the government. Recognize that simple questions (e.g., who owns and has access to land, who can cultivate it) do not necessarily have easy answers. Responses from one group may be strongly contested by others. Consider what may be the key dilemma: In the context of an armed conict or its consequences, how far can humanitarian agencies go in protecting communities affected by land-misappropriation without endangering their neutrality?18 WATER Many refugee and IDP camps and settlements lack a reliable and plentiful water supply, and water frequently needs to be brought in. The minimum standard of providing at least 15 liters per person
121
per day as dened in the Sphere Humanitarian Charter and Minimum Standards in Disaster Response19 is rarely met. At times, UNHCR has been forced, through circumstances beyond its control, to provide only ve liters per day.20 For refugees around the world, water collection imposes a major burden on camp residents, disrupting livelihood activities for women and schooling for children.21 Water shortages regularly cause tension among camp residents and with neighboring communities.22 The increasing scarcity of water is a reality that must be confronted with innovative approaches. Any agrarian intervention must realistically factor in the likely rate of rainfall and availability of surplus water for household requirements; constraints on drilling new wells; and the cost and reliability of trucked-in supplies. Crops with low-water requirements will generally be required, which may include maize, rice, sorghum, millet and groundnuts. It should be noted, however, that the appropriateness of low-water and drought-resistant crops is highly dependent upon specic soil conditions and climate. MARKET ACCESS The ability to access markets is a central consideration in developing interventions that raise displaced participants above the level of subsistence activities and allow them to develop livelihoods. Transportation infrastructure may have been seriously damaged in conict, impeding or eliminating access to markets. Programs should ensure that markets are accessible and that travel to markets will not place women or their children at additional risk. If there is a fee for renting a market space, ensure that this fee will be manageable for participant vendors in the long term.
CASE STUDY Community Collection Center in Nepal23
Recognizing that women faced barriers selling their products, an NGO in Nepal assisted conict-affected women to sell their produce daily to a collection center that served as a central storage and distribution facility. The collection center manager is a trusted community member who sells the produce in bulk in local and regional markets, thus reducing womens dependence on a once-weekly village market where sales and prots are uncertain. The collection center has freed women from having to spend an entire day stafng their market stalls, giving them additional time which they have used to increase production and diversify their crops. So far, the collection center managing agent has managed to sell most produce. More farmers are becoming interested in using the services of the collection center. However, oversupply could become a problem if additional markets are not identied.
122
Agrarian programs can help improve nutrition in refugee communities, and excess produce can be sold to increase household income. Womens Refugee Commission/Dale Buscher
123
PRELIMINARY STEPS
Before an agrarian livelihoods intervention is developed, it is essential to conduct assessments to understand the local context and determine community and market needs. Practitioners should conduct a conict analysis, a market assessment, a participatory rural appraisal and, where appropriate, a value chain analysis.
What are their power bases and resources? What are the roles of men and women in this conict situation? What are their specic needs, interests, and potential strengths?26
Analyzing Conict Dynamics: What events, actions, and decisions can be identied as actual or potential trigger factors? What consequences have these trigger factors had or will they have on structural causes and key actors? What is/are the main mechanism(s) driving the conict: for example, structural instability, struggles for power and inuence, security dilemmas, or a combination of the above?27
CONFLICT ANALYSIS
Given the insecurity of land tenure in displacement contexts and its implications for agrarian livelihoods, it is essential to conduct a conict analysis with the participation of the local and displaced communities. The Swedish International Development Cooperation Agency (SIDA) provides the following guidance:24 Analyzing Structures: What are the key sources of tension and the underlying structural causes that could lead to structural instability in the society (e.g., poverty, economic inequality, poor governance, lack of democracy, uncontrolled spread of small arms, human rights violations, and scarcity of natural resources)? What structural factors can be regarded as promoting peace (e.g., low levels of corruption, functional social safety nets, independent judiciary, and military forces under civil democratic control)? What is the governments institutional capacity to respond?25 Analyzing Actors: Who and what are the key actors? What are their interests?
MARKET ASSESSMENT
A well-executed market assessment is critical for the long-term success of an intervention. For agricultural, livestock-rearing and pastoral interventions, markets may include food, livestock and wholesale markets. When conducting a market assessment: Identify the most appropriate markets: Look beyond the immediate vicinity to include markets that might be regional, domestic, international or niche. Coordinate research with relief, government and inter-governmental agencies. Assess demand: Observe changes in the market, paying special attention to growth markets and trends. Perform visual assessments at different times of the day and talk to market actors about which products are in demand. Consider market failure: Consider potential market failure, especially that associated with the impact of large regional players and the effect of cheap imports.
124
Be aware of changing markets: One of the challenges of working in a post-conict environment is the rate of market change. Transaction costs may be highly inated immediately following a conict, but tend to decrease as stability returns and infrastructure is rebuilt. Identify key market actors: Market actors, including sellers, buyers and traders, can be valuable sources of information and support. Facilitate linkages between these representatives and communities of the displaced. Increased supply can be threatening to those already involved in the market. Be sensitive to how this might impact responses. In post-conict settings, consider the potential for market actors who are assisting or beneting from the conict economy and may have contributed to violence or displacement. Market actors functions and relationships: Understanding market actors functions and relationships along the value chain can highlight both product and service gaps and opportunities. Questions that can be asked of key market actors: Can you describe your activities and involvement in this market? Why are you involved in these activities? How do you perceive your business in general? Who are your most important suppliers and clients, and how well do you collaborate with them? Where do you get seeds, livestock feed, tools and equipment? What are the main problems you face in your activities and in the market? How does conict and displacement affect the market and the activities that take place here? How do you secure tenure for your stall/stand/ space? What is the age, gender, ethnic/social/religious makeup of people who sell here? Of people who buy here?
Who owns the market? Who protects the market? What causes price uctuations (seasons, insecurity, climate variability, conict)? What currencies are accepted at the market? Are most transactions through trade or barter, or in cash? Do traders give credit? If no, why not? If so, to whom? (To men, women, youth, older people? To particular ethnic, social, political or religious groups? To displaced or non-displaced community members? To relatives?) What, if any, are the barriers to entry to selling at this market? What, if any, are the barriers to purchasing or bartering goods in this market? Are there parallel or underground markets that operate alongside this one? If so, what is traded in these markets? Do local growers have sufcient labor? What kind of labor does the market demand?
PARTICIPATORY RURAL APPRAISAL

Participatory rural appraisal (PRA) is a growing family of participatory approaches and methods that emphasize local knowledge and enable local people to make their own appraisal, analysis, and plans.28 The intent of PRA is to enable shared planning among local communities, practitioners and government agencies. NGOs help to facilitate data collection and analysis, but community members are the center of the data collection, analysis and decisionmaking. According to the Food and Agricultural Organization, possible problems with the use of PRA methodologies include questionnaire surveys and quick rural visits, which may be awed due to poorly planned questions that prompt certain responses from participants, or biases that mischaracterize communities in need. For example, misin-
125
formation can be gathered when overlooking poorer rural communities; speaking with rural or more wealthy leaders who do not represent all groups; conducting visits when workers are busy in the elds and cannot participate; or when a showcase village or technology is repeatedly shown to outsiders, who get the impression that this is typical of all efforts.29 The World Bank recommends the following key principles:30 Participation: Assessments should use the input of local communities. Teamwork: Teams should be balanced and represent the diversity of socioeconomic, cultural, gender and generational perspectives, and include nationals or expatriates with local knowledge of the areas conditions, traditions and social structure.31 Flexibility: As there is no single model for PRA, techniques should be adaptable to particular development contexts and changing variables, such as the size and skill mix of the PRA team, the time and resources available, and the topic and location of the work.32 Optimal ignorance: For time and resource efciency, PRA work intends to gather just enough information to make the necessary recommendations and decisions.33 Triangulation: Because PRA uses qualitative data, ensuring that information is valid and reliable requires that PRA teams follow the rule of thumb that at least three sources must be consulted or techniques must be used to investigate the same topics.34 The rst step in PRA is developing an understanding of the local displacement context, which will allow practitioners to design the most effective activities. For example, if the community is highly segregated by gender, interview groups may need to be divided by gender. If a large number of community members are illiterate, pictures may be a central technique.
Second, PRA is often most effective when conducted at a relevant location so that real world examples can be readily accessed. For a community that is interested in developing a project based on crop production, it may be most effective to hold meetings, focus groups and interviews in a post-harvest facility or eld. Third, the heart of PRA is community participation and teamwork; therefore, the facilitators should strive to be as unimposing as possible and allow the community to guide the techniques. The Institute for Global Environmental Strategies (IGES) recommends the inclusion of the following techniques in PRA:35 Secondary data reviews that supplement the assessment, such as reports, books, maps and news articles Observation Semi structured interviews, in which only some questions are predetermined Analytical games, which allow community members to rank their priorities and preferences for the goals of a project Stories and portraits, which allow illiterate community members to fully participate Diagrams, such as Venn36 or ow diagrams, maps, aerial photos, transect walks (which dissect by cutting across any area or line transversly), seasonal illustrations, time lines or historical proles Workshops, which provide an opportunity for locals and practitioners to talk together37 The World Bank notes that mapping and modeling are good techniques to start with because they involve several people, stimulate much discussion and enthusiasm, provide the PRA team with an overview of the area and deal with noncontroversial information.38 Individual interviews may be better left until the end of the PRA as a way to follow up on the reasons for differences between preferences within the community.39
126
CASE STUDY Cotton in Northern Uganda40
Before designing a livelihoods intervention, the International Rescue Committee (IRC) worked in IDP camps in northern Uganda, facilitating participatory appraisals with camp residents. They identied areas unsafe for cultivation and recognized that food crops would be at risk of theft. Roads were insecure and the IRC was concerned about promoting crops that farmers would need to transport to the market. A further constraint was that owners of land surrounding camps were generally only willing to share access with relatives or neighbors, not with IDPs. The IRC and residents developed an intervention focused on the cultivation of cotton and established a business relationship with a cotton processor who undertook to collect the bulked crop from the camps. By offering plowing services, organizing security patrols and training landowners who were willing to share their land with IDPs, the IRC was able to convince them to participate. Cotton was grown in elds away from camps and food in elds adjacent to them. Because many farmers were unfamiliar with organic cotton, the IRC facilitated community meetings and made price information available. This small pilot project involving 400 cultivators has improved household incomes and demonstrated it is possible to support economic recovery programs, even in the midst of violent conict.
VALUE CHAIN ANALYSIS

A value chain analysis considers the role and responsibilities of each actor in the value chain and which actors bear which costs. It looks beyond products, prots, markets and actors to determine how rules are established, who yields power and how information and skills are transmitted. Value chain analysis can help identify the elements needed for a successful market-driven agrarian livelihoods intervention as well as the key points along the value chain where further opportunities exist. When undertaking a value chain analysis, it is important to try, wherever possible, to: compile a map of the pre-conict value chain and compare it to the post-conict value chain; identify value chain actors relationships with actors involved in the conict; explore whether the value chain has helped re-establish links interrupted by conict; identify any security risks associated with participation in the chain; identify applicable technological innovations and assess where these innovations will have the most impact, particularly on growing trends in markets;
127
understand the structure of the value chain; identify who has power within the chain: producers, consumers or commercial intermediaries? Do all actors enjoy equal bargaining power? determine whether the value chain relies on the supply of imported inputs or whether it reinforces natural resource dependence; determine the risk that strengthening the value chain might reinforce or exacerbate socioeconomic inequalities or regional wealth and income disparities.
CASE STUDY Value Chain Analysis in Sierra Leone41
In 2006, the American Refugee Committee (ARC) conducted a three-month nationwide study of supply chains and rural markets for bananas, cocoa, cassava and groundnuts in Sierra Leone. Focus groups were conducted with farmers, transporters, traders, brokers and others in the value chain. After developing value chain maps, staff synthesized information on production yields and revenue potential, and identied the constraints of each crop. Bananas were found to be too perishable, and there were no opportunities to partner with a company to support a cash crop such as cocoa. ARC realized that as a result of conict, Sierra Leonean producers could no longer meet domestic demand for groundnuts and that some 20 metric tons were being imported each week. As refugees returned, domestic demand was increasing. Staff ranked their priorities for the project: reaching a large number of participants, increasing producer income and exploring the possibility of adding value. As a result of conducting a value chain analysis, they chose to develop a project based on shelled groundnuts, thus avoiding the initially appealing prospect of supporting export cash crops.
128
DESIGN
When designing any type of agrarian intervention, the following elements should frame the development of the intervention: Diversify products in order to reduce vulnerability. For example, if disease ravages a sh population, farmers will be better protected if they have also been raising a complementary product, such as rice. Identify how value can be added to agrarian products. Adopting methods for adding value to raw products is an essential step in helping people transition from subsistence farming to a self-sufcient livelihood. Post-harvest processing can add signicant value to raw products and lead to increased prots, as many post-harvest processing techniques allow for agricultural products to be sold in the off-season, when higher prices can be earned. Drying fruit, for example, can be an excellent way of adding value to a product that is often virtually worthless in markets that are ooded with the same fruit at the same time. Meeting organic or fair-trade standards can be a way to add value to products targeted for export and may be particularly well suited to developing countries that have limited access to chemical fertilizers and pesticides. Post-harvest processing can also help regularize growers income, making them less dependent on immediate harvest earnings. Develop extension systems needed to support the intervention. Sustainable access to vaccines, pesticides and other resources that protect crops and livestock are critical. An excellent intervention can fail if there is no way to protect assets against disease. Identify what training and materials are needed, and whether they can be provided in order for displaced people to learn to undertake this intervention successfully. Identify whether the formation of cooperatives or groups will enhance displaced peoples livelihoods or security. Co-ops can ensure that participants have a reliable source of information, that they receive a fair price for their products and that they have more control over various functions in the value chain. Co-ops can also offer additional safety and protection for women who might normally work alone or in small groups, or where they are at risk of gender-based violence or unfair labor practices. Consider the benets of both mixed-gender and women-only groups, and choose the conguration best suited to the community. For example, if training is conducted primarily by men, women who might feel inhibited working with them on an individual level might feel more comfortable in a group setting.42 Look for effective local protection mechanisms and build upon these.43
129
CASE STUDY Womens Cooperative Promotes Peace in Burundi44
Urunani Abahuza MitimaCollective of Friendsis a farming cooperative established in 1998 by two women who had taken a conict transformation training course from the women-led Burundian peace building initiative, Dushirehamwe. These two women decided to reach out to different communities about post-conict reconciliation and found that a collective livelihoods effort would help to build both trust and self-reliance. Members started income generation activities by cultivating pineapples on a four-hectare piece of land, with sales enabling them to buy cloth and soap. Working together, the collective expanded to also grow potatoes and beans. In order to further expand and diversify, they contacted a European Union-funded program in Burundi, which donated cows and sheep. Over time, with increasing numbers of their cows and sheep, the collective gave some of the livestock to other groups that had not been successful in receiving funding. With more than 300 members, including 40 men and 30 young girls, the association is considered a model collective, addressing its members basic needs and also distributing seeds from its pineapple, potato and bean production to the wider area. The cooperative demonstrates how diversifying production can improve overall agricultural output and increase income to pay for costs, such as school fees, health care and clothes. Further, community solidarity was established among different ethnic groups around a common goal. In spite of the gains of the collective, weaknesses, such as a lack of organisation and leadership, and scanty knowledge of management, have caused discouragement among some members who have sought personal gain rather than shared solutions.45 To resolve these problems and promote ongoing peace building, Dushirehamwe leaders are prioritizing capacity building, training and monitoring of the groups that evolved from their network.
130
A refugee woman who has returned to Liberia harvests cassava leaves in Lofa County as part of a community empowerment project. UNHCR/A. Rehrl
131
CASE STUDY Agrarian Assistance to Nepali Former Child Soldiers46
In Nepal, several agencies assist children and youth recruited by the Maoists and the government as soldiers and porters. The implemented programs allow young participantsmostly ages 13 to 20to make choices about their future by offering assistance either for school-related costs, such as books, supplies or uniforms, or for incomegenerating activities, such as goat raising and vegetable production. Those choosing an income generation activity are enrolled in existing cooperatives supported by membership fees, making the young participants shareholders. An initial deposit placed into the cooperatives savings and loan program can be accessed by the youth for credit after three months. Members of the co-op serve as mentors and trainers for the young participants and provide ongoing technical support for their income generation project. These programs have assisted former child soldiers reintegration by reducing discrimination and stigmatization, while promoting community inclusion. However, most of these programs are inadequately funded: support is only given for one year. Further, the amount of resource support provided10,000 to 12,000 rupees per child (roughly $156 to $188 USD)is considered by implementing agencies to be too small to make a signicant impact on the reintegration of the young participants.
Determine the appropriate timeframe for the intervention. Developing a time line is an important step for agricultural interventions, particularly in post-conict settings where disruptions in the planting cycle can have long-term effects on the food supply. It may take years for some livestock to generate income. Activities that are focused higher on the value chain often take longer before results are seen. Ensure that the chosen intervention is well suited to the available timeframe and consider factors that could inuence the timing of the harvest, such as climatic variability. If the reduction of food aid is a component of the intervention, the reduction must be carefully timed. Be cautious about removing food aid too quickly, before farmers have had enough time to harvest their crops and make enough money to purchase their own food. Funding cycles of multiple years are crucial for sustainable agricultural interventions, particularly in returnee settings, and NGOs may need to advocate with donors for longer-term cycles. The following sections are divided into specic program design guidance for agricultural and livestock-rearing interventions.
A. AGRICULTURAL INTERVENTIONS
When developing or supporting an agricultural intervention, it is critical to ensure that people have access to the range of inputs necessary for the successful cultivation of a particular crop or agroforestry product. Access to land must be assured and not be the cause of any threat to the security of participants. Further, in order for a crop-based intervention to be successful, participants must have access to necessary seeds, fertilizer, tools and equipment; and adequate labor must be secured for the growing, harvesting, storing and distribution stages.
132
In many cases, agricultural products grown and processed by displaced people are consumed rather than sold, to supplement food aid and diversify households nutritional intake, while cash crops make up a small portion of agricultural production. Further, displaced people working in agricultural production may be working as laborers for host community farmers, for cash wages or in-kind payments, or as sharecroppers. Agricultural work may be just one of several ongoing livelihood strategies employed by displaced people. Agricultural interventions must take into account the barriers faced by women and seek to address them. They may not have the same access to land tenure as men47 and may not receive the same remuneration for their work, even though women account for more than 50 percent of the labor force, and they are responsible for three-quarters of food production in sub-Saharan Africa[while] the design of many development policies continues to assume wrongly that farmers and rural workers are men.48 Interventions should include both women and men, and the protection and safety of women participants must be paramount.
higher yields and increased benets in a competitive market. However, while the introduction of new crops may appear to be a good way to diversify diets and the market, new crops can carry signicant risk and may not be appropriate for people who have very few assets. On the other hand, mono-crop production can lead to vulnerability if there is crop failure. Problems with agricultural interventions have included the use of inappropriate seeds, insufcient irrigation, poor or inappropriate soil conditions, climate, drought, lack of product demand and the lack of needed extension support services. In addition to access to land and inputs, one of the challenges of crop-based livelihood interventions is balancing the cultivation of cash crops with the cultivation of food crops. In order to determine the appropriate ratio of each of these crops, participants needs must be carefully considered. For households that are food insecure, it may be essential to choose a crop that yields a quick, sure harvest that will improve nutrition and reduce hunger. For households that have relative food security but have limited opportunities to generate income, supporting the production of a cash crop that requires time to mature may be the most appropriate intervention. When applicable, such as in return contexts, the incorporation of post-harvest technologies can be a critical element in the transition from subsistence farming to a sustainable livelihood: agricultural workers are already producing, but suffer signicant losses due to problems related to storage, cleaning, eld removal and processing. Post-harvest technologies, such as rening and preserving, enable participants to achieve a better return on their investment by allowing them to differentiate their product and extend the life of their crops.
CROPS Common interventions in this sector include: seed and tool distributions to assist farmers to re-plant their crops; setting up seed banks to reintroduce and make available seed varieties for crops; integrated crop management to maximize land and water resources; training of agricultural extension workers; planting demonstration plots to introduce farmers to new varieties and new farming techniques; and introducing post-harvest inputs, such as grinding mills. Crop selection that is driven by market demand must be determined by available varieties and geographical conditions in order to ensure
133
CASE STUDY Farmer Field Days, Northern Uganda49
In the conict-affected areas of Kitgum and Lira Districts, small farmers have limited negotiating power with buyers due to the fact that they have small amounts of surplus crop for sale and transportation of crops to market is expensive and dangerous. Many are forced to depend on middlemen. The International Rescue Committee (IRC) organized a series of Farmer Field Days (FFDs), which have offered many IDPs their rst chance to display and sell goods since they were displaced by the war between the government and the rebel Lords Resistance Army.50 Goods brought to market included sesame, peanuts, cassava, chickens, goats, beans and honey.51 The FFDs are part of a program funded by the Swedish International Development Agency (SIDA) to help stimulate economic growth, and revitalize the agriculture and livestock industry in northern Uganda.52 The equipment supplied by the IRC included grinders, oil presses and rice threshers, which were demonstrated and then rafed off in order to stimulate demand by encouraging recipients to be role models of the benets of localized agro-processing.53 FFDs are vital to the IRCs strategy to rebalance the negotiating power between the small farmers and buyers, forge long-term relationships between farmers and higher-level buyers, promote collective marketing, connect farmers to agro-input dealers, develop relationships of trust between farmers and government representatives and demonstrate the positive impact of public-private sector relationships.
134
AGROFORESTRY Agroforestry may be a useful livelihoods intervention in instances where forest areas are unused and accessible to displaced people or where available land can be reforested. Agroforestry interventions may include tree planting, the harvesting of timber and non-timber forest products, fruit and fruit tree production, forest management and the collection and use of wood. Displaced groupsprimarily women and girlsnear forested or semi-forested areas often use these resources for the production of charcoal, the gathering of rewood used for cooking and also to generate income, which exploit natural resources, and can place these groups at risk.54 The gathering of rewood often entails walking up to several miles outside of camps and settlements to areas where wood resources can be found. In conict-affected areas, refugee and IDP camps are often situated near sites of conict and unrest, where women and girls seeking rewood risk gender-based violence, theft, assault, abduction and murder.55 Alternatives to the gathering of wood fuel are fundamental to the protection of women and girls, and to lessening its environmental impact. Dedicated agrarian livelihood interventions must ensure that participants are not in harms way and try to anticipate any unintended consequences. Where land is accessible and does not pose vulnerability to participants, agroforestry is a sustainable natural resources management system that can limit impact on the local environment. Increasing production yields by integrating trees and agricultural land, successful agroforestry systems improve productivity and mitigate the negative environmental effects of deforestation and unsustainable agricultural practices. Agroforestry can prevent erosion and reduce risks from natural disasters and wind damage, which is particularly important for displaced groups working on marginal land. In addition to the products derived from farming
whether crop- or animal-based, or mixed-production systemstrees themselves also provide a source of income.56 For example, fruit trees provide fruit as well as valuable seedlings, and many traditional medicines are derived from indigenous trees, shrubs and herbs. This is particularly important when considering the World Health Organizations estimate that approximately two-thirds of the worlds population may use herbal or traditional medicines and that the global market for herbal medicines is worth approximately $60 billion USD per year.57 Agroforestry interventions are, however, not always appropriate. These interventions involve specic skills and take more planning and risk assessment than do many other agricultural interventions. Agroforestry has a relatively long production cyclemore than one yearwhich may make it unsuitable for fragile displacement situations.
135
CASE STUDY Addressing Illegal Farming Activities in Tanzania58
the Public-Private Partnerships chapter on this agroforestry intervention in Nepal.) Questions to ask when designing an agricultural intervention include: Which areas are safe for displaced people to conduct cultivation and harvesting work? Can participants safely get to and from the agricultural land selected for the intervention? Will the intervention have a negative environmental impact or deplete natural resources? Are there enough workers to cultivate, harvest and tend to the crops for the duration of the crop cycle without having to use child labor? What types of crops grow well in the climate? What types of crops are well suited to forested areas? How many growing seasons are there for these crops? Which crops will still be salable after they are transported or stored? Which crops store well? Which crops offer opportunities to incorporate post-harvest technologies? Will the cultivation of crops affect the areas ecology? How vulnerable are these crops to disease, theft, oods and drought? How fertile is the soil? Can the yield be accurately predicted? What are the crops water requirements? Is this water available on a sustainable basis? What methods of irrigation are available? What innovations have been used locally to address any shortages of water? What is the appropriate local balance between cash crops and food crops?
In Tanzania, as in many countries, government policies do not permit refugees to practice agriculture, but in refugee camps they may grow kitchen gardens on small plots. When food aid in Tanzania was dramatically decreased, agricultural production increased, which occurred clandestinely in nearby forests and protected areas. Some refugees made [illegal] agreementswith local people to use public land, and traveled in secret to and from these plots.59 UNHCR reports that their farming practises were generally unsustainableland was deforested, shifting cultivation tended to be adopted, and soil erosion control methods were not practised. Cultivation was frequently near rivers, leading to rapid erosion, siltation, pollution of water resources and reduced water ows.60 CARE Tanzania sought to address these problems by working with environmental committees in villages around the camps. To support land preparation and natural resource use plans, villagers and refugee leaders were trained to manage, control and coordinate access to village-owned natural resources. Government policy has not changed, but state regulations allowing villages to own forest resources have been used to establish local involvement in the use and management of forest resources.
An example of a successful agroforestry livelihoods intervention is a public-private partnership formed in Nepal. Program participants grew and harvested herbal plants, extracted the plant oils through a distillation process and sold the valuable extracts to a U.S. cosmetics company. The project utilized fallow forest areas, connected participants to distant markets, trained them in useful cultivation and processing skills and increased their income.61 (See
136
CASE STUDY Innovative Use of Irrigation in Northern Kenya62
In Daadab refugee camp in northern Kenya, GTZ (a German NGO) Kenyas extension team came up with three solutions to grow vegetables in the arid landscape. First, spilled waste water from tap-stands used to supply fresh water for households was channeled into small vegetable gardens and around fruit trees. The second strategy was meant to prolong the benets of water. Areas that were able to catch up to 50 liters of rainwater were dug and lined with plastic sheeting. They were then lled with soil and compost, with vegetables grown in and around them. UNHCR notes that these areas acted as micro-catchments that reduced seepage, held water and kept the soil moist longer.63 During the dry season, small amounts of water could be added to keep the plants vital. Finally, multi-story container gardens were created from old polyethylene sacks that the World Food Programme provided. The strategy of this project entailed mixing local soil and animal manure and placing it into each sack; small holes were then cut in the sides and seeds and seedlings planted in the top of the sacks and also in the slits in the sides. The whole sack looked as if [it] was growing: each produced up to US$5 worth of vegetables in a season.64 This case study represents resourceful, straightforward practices that may be suitable for replication in agricultural interventions operating in arid or semi-arid regions.
B. PASTORAL INTERVENTIONS
Displaced populations that engage in agriculture or other income generation activitiesmay also keep livestock as a livelihoods strategy or to supplement their food intake. Pastoral populations, on the other hand, base their entire livelihoods system on animal husbandry. Vtrinaires Sans Frontires (VSR) reports that three quarters of the worlds poor depend entirely or partially on livestock for their survival.65 Yet civil conict, the erosion of natural resources, land privatization and commercialization of feed and other inputs are reducing the ability of pastoralists to maintain their traditional livelihoods. The robustness and exibility of pasto-
137
ralist societies have enabled them to endure as long as they have; the most effective interventions will empower communities to nd innovative solutions to new challenges. It is critical that practitioners take into account varying gender roles related to livestock keeping that will help to support participants decision-making ability and reduce vulnerability. Women and girls may have disproportionate responsibilities for the care and feeding of their livestock, in addition to household demands. Further, they may have to walk great distances to collect water for livestock and may be subject to assault and gender-based violence.66
that interventions that depend on external subsidized provision of feed will not be sustainable.68 The Food and Agriculture Organization (FAO) has found that the primary constraints for livestock keepers include land and water access, animal disease, drought and theft.69 FAO reports: These constraints lead to highly variable returns, and many livestock keepers thus adopt a risk minimizing rather than a prot maximizing approach to farming, limiting the productive use of scarce resources and leading to a weak response to market signals. Smallholders, in fact, often tend to use their livestock as a form of insurance rather than as a productive asset. Securing the basics and reducing vulnerability are therefore the rst policy steps to ensure livestock keepers become livestock producers.70 The keeping of livestock by displaced people can have considerable implications for local communities, which may already have substantial animal resources of their own. UNHCR notes: The inappropriate siting of refugee camps or settlements, leading perhaps to vegetation loss as a result of collecting fuelwood and building materials, as well as grazing and browsing by refugee livestock, may disrupt traditional resource use and management systems, and impact on important seasonal grazing lands. This can be catastrophic to host communities reliant on their livestock, affecting their livelihoods and providing a basis for antagonism and hostility between the host community and refugees.71 As a result, some host governments discourage or even prohibit by law any refugee engagement in keeping and raising livestock.
LIVESTOCK Common interventions include: establishing animal banks where in-kind grants of animals are repaid to the bank with offspring for subsequent distribution to others; direct distributions of animals; the provision of animal feed; and the training of veterinary assistants to support livestock owners. Livestock are commonly kept by displaced people and are an important nancial asset as well as social asset in many cultures, forming the basis of social relationships through gifts, exchange, bridewealth and nes.67 Livestock are also fundamental to many returnee situations, as they can provide a broad range of products. However, during displacement, most livestock are lostthey may be left behind when people ee; people may be forced to sell some off to pay for necessities in emergencies; or they perish once refugees and IDPs reach camps due to lack of feed, water and grazing land. It is often impossible to practice conventional pastoralism due to the physical setting, spatial arrangement and density of refugee and IDP camps and settlements. Feeding zero-grazed livestockcattle or goats penned inside settlementsrequires availability of affordable and sustainable feed. Yet UNHCR warns
138
CASE STUDY Water, Livelihoods and Resettlement: Lessons from Eritrea72
The Gash-Barka region in Eritreas western lowlands has become a site of resettlement for refugees returning from Sudan and those displaced by border clashes with Ethiopia. Gash-Barka provides close access to Sudan, has low population density, and agricultural land and wood resources are generally available. The arrival of displaced groups, however, had a negative impact on an already fragile natural resource base. In response, the Eritrean authorities began a rapid borehole drilling program whose planning was not informed by hydrogeological knowledge or an understanding of replenishment rates. High-yielding boreholes have encouraged larger livestock numbers, signicantly impacting grazing and other environmental resources. This has been accompanied by a general commoditization of renewable natural resources, including water, thatch, wood fuel and other building materials. Households that have been able to transport animals have beneted by collecting and selling commoditized resources, whereas those lacking transportation abilities have had to either reduce consumption or work harder to meet basic household needs.
LIVESTOCK INTERVENTIONS Effective interventions may focus on helping displaced pastoralists discover alternative means of accessing resources, such as new rainwater management techniques or the cultivation of plant fodder, which provides animals with food and helps alleviate potential conict over land. Interventions may also focus on supporting pastoralists efforts to diversify.73 Specic interventions may include:74 Destocking: It may be necessary to arrange for destockingthe reduction of herd sizesduring displacement and periods of drought or crisis, so that pastoralists salvage some value from animals that would otherwise die. Destocking programs involve buying farmers livestock at a fair price (or offering healthy animals or goods in exchange), arranging for immediate slaughter and the distribution of dry or fresh meat.75
Building relationships with livestock traders may allow pastoralists to feel more comfortable with destocking, resulting in higher prices if pastoralists are willing to destock earlier because they trust the traders. While destocking can provide rapid relief to households affected by drought,76 it is not ideal, as it takes many years to restore herd sizes. Programs should account for gender implications with destocking, particularly as cash is often controlled by men and food is the responsibility of women in many pastoral societies: In such cases, meat distribution may help to support womens role in securing the family food supply, while cash purchase of livestock may increase male heads of households spending power, over which women may have little control.77 Restocking: When displaced groups have the land resources and ability to feed livestock, herd reconstitution, in which displaced pastoralists
139
are supplied with breeding animals to rebuild herds or provided with cash or credit in order to restock, may be necessary. Restocking with local animals is the most successful approach because these animals are accustomed to the local conditions, there is no risk of introducing new diseases, and the local economy also benets.78 Provision of Water: Programs may provide water to ensure the survival of animals, either from tankered supplies or distribution points. There should be equal access for participants gathering water for their livestock. Veterinary and Animal Health Support: Participants may have their animals treated at local public or private veterinary clinics. Another intervention might focus on training the displaced to become community animal health workers (CAHW). Such an intervention can be effective, as it both offers employment opportunities and provides basic veterinary services in remote rural areas,79 and can ensure the protection of livestock through the use of vaccines. When designing a CAHW program that is targeting women, identify any safety concerns and ensure that the program will not place women at risk by asking them to travel to unsafe areas. The International Fund for Agricultural Development (IFAD) recommends asking the following key questions when designing livestock interventions in crisis and post-crisis settings: What types of livestock systems have been affected by the disaster and how? Which groups are most affected/vulnerable and what are their priority needs? Which livestock intervention is the most appropriate (considering the types of problems and target group)?80
POULTRY Poultry can be an appealing intervention in displacement contexts because keeping fowl is low-cost and requires relatively little feed and little effortchickens are often unfed, having to scavenge for themselves.81 Chickens are often the only animals that impoverished displaced people are able to keep, particularly as they do not require a great deal of space. While their yields of eggs and meat can be used for income generation, keepers of WOMENS REFUGEE COMMISpoultry often consume these products to meet their SION own food needs. In many countries, the care of poultry is largely undertaken by women and girls.82 In many rural African areas, poultry ownership is based upon social custom, and while 70 percent of women own chickens in rural sub-Saharan Africa, in many societies they are prohibited from eating chicken meat or eggs,83 and they may be expected to consult men before making decisions about the birds.84 Practitioners should seek to understand gender roles and incorporate gender-based constraints in the design of poultry-based pastoral interventions, so that the interventions work with local cultural practices. Before beginning a poultry intervention, it is important to evaluate participants ability to guard against threats of illness, theft and predation. If an intervention is successful, the decision to intensify production must be carefully considered, as birds are often more susceptible to disease when closely conned in densely populated settlements. Community collaboration and the formation of groups can enhance the effectiveness of poultry-based interventions by providing opportunities for information sharing and responses to threats.
140
CASE STUDY Pilot Poultry Project in Remote Eastern Democratic Republic of Congo85
In the Democratic Republic of Congo (DRC)s North Kivu province, a region with massive levels of displacement, UNHCR and Vtrinaires Sans Frontires are implementing a pilot project to raise the nutritional levels of female-headed households, abused women, people with disabilities, older people and the young. The pilot project gives families 20 egg-laying hens, feed and medicines, as well as assistance to build a hutch and chicken run. One of the biggest challenges has been introducing the concept of commercial exploitation of hens. While many Congolese rear a few chickens at home, they are often unaccustomed to using chickens to generate income. To ensure long-term sustainability and self-reliance, UNHCR is offering training for the displaced poultry farmers in chicken feed processing techniques using local ingredients and making feed from kitchen leftovers.86 The program has suffered from a major logistical constraint: the late delivery of feed and medicine, which have to be own to the North Kivu provincial capital, Goma, and then trucked to distribution points in this remote, conict-affected region.
Questions to ask when designing a livestock- or poultry-based intervention in a displacement context include: What might be the environmental impacts of this intervention? Will there be excessive demand on water resources and grazing areas? Will livestock contaminate water required for human consumption? Can livestock be prevented from damaging host communities crops? What animals are refugees/IDPs familiar with? What animals are culturally appropriate? Are they prepared to consider raising animals they are not familiar with? What are government regulations concerning notication of animal diseases, movement and quarantine of animals, slaughtering, the import of veterinary medicines and vaccines, and the safety of meat and dairy products? How much feed and water does a breed under consideration for an intervention require? Can it be obtained? Will it still be available once external support ends? Can feeding of poultry be ensured, that is, is there sufcient feed, grains or food scraps? Are there any cultural restrictions barring women from raising this animal? What products can be developed from it? Can action be taken to ensure animal products are t for human consumption? What diseases is this animal susceptible to? Are vaccinations available? Are government or private sector veterinary services available? Can members of displaced communities be trained in breeding techniques? Can they be trained as community animal health workers? Would this be permitted by the authorities? Would they be able to travel? Who would pay for their services?
141
Can health hazards caused by uncontrolled use of veterinary drugs be managed? Is the planned intervention likely to be regarded as a threat by host communities? If so, how can this threat be mitigated and local communities involved? How might the ownership of particular livestock or poultry cause vulnerability to theft or perceived inequality?
CASE STUDY Fish Ponds in the Republic of Congo87
AQUACULTURE Common aquaculture interventions include: building and stocking shponds; building and distributing shing boats; repairing, weaving and distributing shing nets; sh drying; and developing cold storage capacity for preserving and transporting sh to markets. Aquaculture requires relatively few inputs, can be conducted in most climates and can be a good complement to other livelihood activities. When looking at a sheries intervention, consider not only the business of catching, raising and selling sh, but also the many businesses that may result from the establishment of successful sheries, including the raising of small fry for sale, sh processing and value-added activities, such as smoking or salting sh. Fishing livelihoods are often highly gender differentiated. In many places, men tend to be more involved with the catching of sh and women with its processing and distribution. Though aquatic resources are renewable, they are not innite, and proper resource management is needed.
In the Republic of Congo, the Pool district has been severely affected by conict. Aware of a serious shortage of protein, the International Committee of the Red Cross (ICRC) collaborated with the government to launch a program to rehabilitate sh farming. More than 100 groups of IDPs have received training and tools to rebuild sh ponds. They received ngerlings of a more productive breedTilapia niloticathan local breeds. The program has become a stable supplier of juvenile sh in Pool, and the number of sh ponds has increased nearly four fold, from 85 to 320. The ponds yield a steady supply of ngerlings for further sh farming, while adult sh are sold in markets, boosting household income and community food security.
Some of the questions to ask when designing an aquaculture intervention include: Is the siting of aquaculture ponds appropriate for the displacement context? Can the proximity of conict be a liability for program participants? Are sh a culturally acceptable food source? Is there a market for sh? Is it protable? Can ponds be sited away from natural ecosystems where they may escape and become integrated? Can ponds be situated so that they can collect rain but are safe so that people or livestock do not fall in?88 Is it possible to guard against disease? What local plants are natural complements to shponds? Is there a reliable supply of small fry or ngerlings?
142
BEEKEEPING Apiculture, or beekeeping, can be an effective way for poor people to strengthen their livelihoods. Beekeeping requires little land and is feasible in temperate, semi-arid and tropical climates, where bees can access water and there is abundant vegetation providing blossoms/owers regularly throughout the year, and for long periods of time.89 Beekeeping complements other interventions, as pollination can assist the cultivation of new crops. Research into market demand for bee products and the availability of native bees is a crucial rst step in designing a beekeeping intervention. As beekeeping is found throughout the world, many people have knowledge and skills. In many places, it is women who possess knowledge of beekeeping and related industries. Where beekeeping exists but has been primarily practiced by men, the introduction of new technology, such as top-bar hives, which are easily managed and able to be kept close to home, can allow for the inclusion of women. In addition to training, some basic physical inputshives, smokers, clothing and hatsare necessary. Some could be manufactured locally, but non-dependence on exports may have to wait until economies of scale develop that can support local producers.
CASE STUDY Modernizing Beekeeping in Uganda90
In Uganda, traditional beekeeping has long been an important seasonal livelihoods activity in many regions. Rural communities are knowledgeable about bees and the plants and areas they populate. However, the process of collecting honeycommonly done through the improper use of grass torches and re to smoke out the beesoften leaves hives destroyed, colonies killed and honey contaminated and fermented. Honey is often eaten directly from combs or is extracted and sold or given away. Other bee products, such as brood comb (beeswax) and bee bread (ambrosia), are harvested, but often underused. Much of the honey produced has impurities. Some beekeepers have invested in pressing machines, which extract, warm, strain and bottle high-quality honey. The honey and bee propolisthe resinous mixture bees collect to seal holes in hivesare sold to medical clinics to treat health conditions and HIV/AIDS-induced infections. The waxy comb is sometimes salvaged to make candles or is sold for the production of household textiles, garments and batiks. The Ugandan Beekeepers Association has introduced improved wooden hives at a cost of $15 USD each, which reduces the damage inicted to a colony because they can be opened to check on honeycombs. The Association also sells smoker pumps and protective wear, but most beekeepers cannot afford them. In Uganda, there is scope to promote a variety of different strains, such as those that do not swarm, thus aiding beekeepers. A German NGO, Action Africa Hilfe (AAH), has started a project in the Palorinya Sudanese Refugee Camp in Moyo, along the Ugandan border with Sudan. AAH has supplied many hives and starter colonies to assist refugees to start beekeeping as a livelihoods activity.
143
Some of the questions to ask when designing a beekeeping intervention include: Is the local vegetation habitable for honeybees? Can hives be placed in secure sites where they will not be disturbed, such as in trees or top-bar hives? Are the necessary inputshives, smokers, lters, containers, clothing and hatsavailable to support beekeeping? If not, can local people be trained to make their own equipment? Is training or extension support for beekeeping available?
ANTICIPATING UNINTENDED CONSEQUENCES

Effective consultations and feasibility studies in the design phase may minimize unintended consequences, but some negative impacts may be difcult to foresee. These may include issues around: Impact of conict or post-conict recovery on interventions: Determine any conict-related factors that may be inducing vulnerability for participants or inhibiting the success of the intervention, including the potential for conict economies or armed groups to benet from interventions. Nutrition: While interventions that encourage women to participate in growing cash crops may address the need to improve their opportunities for income generation, a shift from food to cash crops could have unintended consequences for the nutritional health of households. Further, programs that stipulate that households receiving livestock or poultry should receive less food aid can put them at nutritional risk. Market saturation: A sudden increase in the number of farmers producing the same product can quickly saturate markets and drive down prices. Watch pricing trends to make sure that the market is not being saturated. Post-harvest processing, off-season growing and storage of products for off-season sale are ways of avoiding the worst impacts of market saturation. Erosion of the private sector: Interventions subsidized by NGOs can discourage private sector production. It is vital to incorporate rather than excludealready functioning private sector activities into interventions. Host country resentment: Tensions between host and displaced communities can arise if local communities feel that displaced groups are receiving an unfair amount of assistance, particularly when refugees and IDPs are engaged in agrarian activities that deplete natural
IMPLEMENTATION
ONGOING MONITORING
Before interventions begin, implementing agencies must formulate a time line and collect baseline information to allow comparison with results from subsequent data gathered. Based upon the implementation and progress of the intervention, ongoing monitoring can determine where adjustments may need to be made in order to overcome challenges and ensure the programs sustainability. Information should be gathered with market assessments, participatory rural appraisals, random household visits, interviews, community focus groups and entry, exit and follow-up surveys. Conict analyses should occur on a regular basis to gauge the stability of the setting for the livelihood interventions.
144
resources. This can potentially be mitigated by projects that work with both host and displaced populations. Ensure that all stakeholders are informed about the broader impact of the intervention. Lack of demand: Because post-conict environments change rapidly, it can be difcult to accurately predict long-term demand. Dependence on pesticides/fertilizer: Can supplies be obtained once external funding ends? Has the environmental impact of their use been assessed? Government policies: Restrictions on land use and freedom of movement, as well as unanticipated policy shifts, can hinder displaced peoples ability to earn an income. (See Working with Host Governments chapter.) Frustration and cynicism: It can be hard to maintain interest among participants, especially if nancial returns are not as high as anticipated or if there are delays in project implementation. Lack of technical support and assistance: Sufcient numbers of trained and remunerated personnel may not be available as planned.
EVALUATION
Good monitoring and evalution (M&E) practices allow agrarian livelihood programs to remain responsive and exible to changes and provide space for redesign. They must go beyond reporting on the number of seeds, tools, equipment or animals distributed and measure the impact of the intervention on participants livelihoods development. The participation of program participants is vital in the evaluation process, but also in the development of impact indicators and the ways in which these indicators can be measured. If goals are not being met, assess ways to modify the intervention to be more effective. The rst step in monitoring is developing a baseline. Different monitoring methods have different strengths, but all projects should attempt to monitor both the process (e.g., how many people have been served) and the results (e.g., the amount by which production has improved) of the intervention.
INDICATORS FOR Lack of trust: Establishment of farmer/pastoralist MEASURING SUCCESS

associations and collective marketing committees can build trust between participants and other market actors. Indicators should be based on the goals and essential elements of the intervention. Indicators can be direct or indirect, quantitative or qualitative. It may be necessary to employ a variety of monitoring and evaluation strategies, including interviews, focus groups, surveys and direct observation. Questions for participants of agrarian interventions might include: Has your income increased? Have you found markets for your products? Have you increased yields? Has your households nutritional status improved?
EXIT STRATEGY
Programs should plan for the eventual exit of the implementing agency in such a way that the intervention is able to continue with the leadership of the displaced and local communities, as well as community-based organizations and other stakeholders.
145
Has your access to markets improved? Has the project provided you and/or your household with greater economic security? If you have seen benets from the project, do you think they are likely to continue? What additional support mechanisms would you like to see in place? What has been the environmental impact of this intervention? What has been the impact of the intervention on gender relations? Has womens decision-making ability and control over household assets changed? Has the status of women changed at the household or community level? Were relations within the host and local communities improved by the intervention, or did they create tension? What were the intangible benets of the intervention (restoration of hope, self-esteem)? How can these benets be measured? The Feinstein International Center has developed a Participatory Impact Assessment (PIA) approach, which is an extension of participatory rural appraisal, meant to measure the real impact of humanitarian assistance and development projects on peoples lives.91 The PIA provides tools to quantify qualitative impact evaluations based on community perceptions, feedback and participation. It allows communities to assess and quantify changes that have resulted from the program. With PIA, the following key questions are raised at the project level: What changes have there been in the community since the start of the project? Which of these changes are attributable to the project? What difference have these changes made to peoples lives? 92
The PIA approach is centered around eight stages to gauge impact: Stage 1: Dene the questions to be answered. Stage 2: Dene the geographical and time limits of the project. Stage 3: Identify and prioritize locally dened impact indicators. Stage 4: Decide which methods to use, and test them. Stage 5: Decide which sampling method and sample size to use. Stage 6: Assess project attribution. Stage 7: Triangulate. Stage 8: Feedback and verify the results with the community.93
146
AGRICULTURE, CROPS AND AGROFORESTRY

Agricultural Research and Extension Network (AgREN), Overseas Development Institute. www. odi.org.uk/networks/agren.
LAND
Humanitarian Policy Group. Uncharted Territory: Land, Conict and Humanitarian Action, Summary from a Conference Hosted by the Humanitarian Policy Group. Meeting report. Overseas Development Institute, February 2008. www.odi.org.uk/ hpg/meetings/land-conference-note.pdf. Overseas Development Institute publications on land tenure issues in countries affected by or emerging from conict. www.odi.org.uk/hpg/land. html. United Nations. Pinheiro Principles: United Nations Principles on Housing and Property Restitution for Refugees and Displaced Persons. 2005. www.cohre. org/store/attachments/Pinheiro%20Principles.pdf.
Consultative Group on International Agricultural Research (CGIAR). www.cgiar.org/index.html. Davey, Chris. Livelihood Options in Refugee Situations: A Handbook for Promoting Sound Agricultural Practices. UNHCR and CARE International, 2002. www.unhcr.org/cgi-bin/texis/vtx/protect/opendoc. pdf?tbl=PROTECTION&id=406c2fae7. FAO and EmergenciesTools. www.fao.org/ emergencies/resources/tools/en/. Ferris, Shaun et al. A Market Facilitators Guide to Participatory Agroenterprise Development. Centro Internacional de Agricultura Tropical (CIAT), 2006. www.ciat.cgiar.org/africa/pdf/eri_guide2/ contents.pdf. International Center for Agricultural Research in the Dry Areas (ICARDA). www.icarda.cgiar.org. Longley, Catherine, Ian Christoplos and Tom Slaymaker. Agricultural Rehabilitation: Mapping the Linkages between Humanitarian Relief, Social Protection and Development. Humanitarian Policy Group, Overseas Development Institute, Research Brieng Paper No. 12, April 2006. www.odi.org.uk/ resources/hpg-publications/reports/22-agriculturalrehabilitation-humanitarian-relief-social-protectiondevelopment.pdf.
WATER
FAO Land and Water Development Division. www. fao.org/ag/agl/default.stm (accessed February 2009). FAO Water. www.fao.org/nr/water/topics.html and www.fao.org/nr/water/cropinfo.html. UNHCR. Water Manual for Refugee Situations. November 1992. www.reliefweb.int/rw/lib.nsf/ db900sid/LGEL-5G8K4A/$le/unhcr-waternov92.pdf?openelement.
147
Longley, Catherine, et al. Rural Recovery in Fragile States: Agricultural Support in Countries Emerging from Conict. Humanitarian Policy Group, Overseas Development Institute, Natural Resource Perspectives No. 105, February 2007. www.odi. org.uk/resources/specialist/natural-resourceperspectives/105-rural-recovery-in-fragile-statesagricultural-support.pdf. Mollet, Matthias. Guide for Beneciary Results Assessment of Agricultural Emergency Interventions. FAO, 2008. www.fao.org/leadmin/templates/tc/tce/pdf/ Guide_for_Beneciary_Results_Assessment.pdf. Overseas Development InstituteAgriculture. www.odi.org.uk/themes/agriculture/index.asp. Overseas Development Institute, Natural Resource Perspectives No. 105, February 2007. www.odi. org.uk/resources/specialist/natural-resourceperspectives/105-rural-recovery-in-fragile-statesagricultural-support.pdf UNHCR. Livelihood Options in Refugee Situations: A Handbook for Promoting Sound Agricultural Practices. 2002. www.unhcr.org/protect/ PROTECTION/406c2fae7.pdf. UNHCR Engineering and Environmental Services Section. Permaculture in Refugee Situations: A Handbook for Sustainable Land Management. 2001. http://postconict.unep.ch/liberia/displacement/ documents/UNHCR_SAFIRE_Permaculture_ Refugee_Situations.pdf. World Agroforestry Centre. www.worldagroforestrycentre.org/af1/index.php. World Bank, FAO and IFAD. Gender in Agriculture Sourcebook. 2009. www.worldbank.org/genderinag.
PASTORALISM, POULTRY, AQUACULTURE AND APICULTURE:

Bees for Development. www.planbee.org.uk. Clarke, Brian. Poultry for Prots and Pleasure. FAO Diversication Booklet 3, 2004. www.cababstractsplus.org/abstracts/Abstract. aspx?AcNo=20056704120. FAO. Promoting Beekeeping as a Source of Livelihoods. www.fao.org/docrep/006/y5110e/y5110e0d. htm. FAO Fisheries and Aquaculture Department. www. fao.org/shery. IFAD. Emergency Livestock Interventions in Crisis and Post-crisis Situations. January 2009. www.ifad. org/lrkm/events/cops/papers/emergency.pdf. Livestock Emergency Guidelines and Standards (LEGS). www.livestock-emergency.net. Pastoral Development Network, Overseas Development Institute. www.odi.org.uk/networks/pdn. Pastoralist Communication Initiative. www.pastoralists.org. UNHCR and International Union for Conservation of Nature (IUCN). Livestock-keeping and Animal Husbandry in Refugee and Returnee Situations: A Practical Handbook for Improved Management. August 2005. www.iucn.org/what/issues/issues/ resources.cfm?631/Livestock-Keeping-and-AnimalHusbandry-in-Refugee-and-Returnee-Situations-APractical-Handbook-for-Improved-Management.
148
University of Minnesota Poultry Production & Health Program. www.ansci.umn.edu/poultry/ resources/for_developing_countries.htm. Watson, Cathy and Andy Catley. Livelihoods, Livestock and Humanitarian Response: the Livestock Emergency Guidelines and Standards. Humanitarian Practice Network, Overseas Development Institute, Network Paper No. 64, December 2008. www. odihpn.org/report.asp?id=2962. World Bank Global Program on Fisheries. http:// web.worldbank.org/WBSITE/EXTERNAL/ TOPICS/EXTARD/0,,contentMDK:20663251~pa gePK:210058~piPK:210062~theSitePK:336682,00. html.
NOTES
1 UNHCR, Livelihood Options in Refugee Situations: A Handbook for Promoting Sound Agricultural Practices (2002): p. 7, www.unhcr.org/ protect/PROTECTION/406c2fae7.pdf. World Agroforestry Centre, Agroforestry Science at the Heart of the Three Environmental Conventions, www. worldagroforestry.org/ar2006/feature_essay.asp (accessed February 2009). FAO, Glossary of Aquaculture, www.fao.org//glossary/ aquaculture. See note 1, pp. 35-36. UNHCR and World Conservation Union (IUCN), Livestock-keeping and Animal Husbandry in Refugee and Returnee Situations: A Practical Handbook for Improved Management (August 2005), p. 9, www.iucn.org/what/ issues/issues/resources.cfm?631/Livestock-Keeping-andAnimal-Husbandry-in-Refugee-and-Returnee-SituationsA-Practical-Handbook-for-Improved-Management. Roger Blench, You Cant Go Home Again: Pastoralism in the New Millennium (Overseas Development Institute, Pastoral Development Network, May 17, 2001), p. 6, www.odi.org.uk/networks/pdn/eps.pdf. International Alert, Local Business, Local Peace: The Peace building Potential of the Domestic Private Sector. Case Study: Kosovo (2006): p. 402, www.internationalalert.org/pdfs/lblp_Kosovo.pdf. International Alert, Local Business, Local Peace: The Peace building Potential of the Domestic Private Sector. Case Study: Colombia (2006): pp. 288-290, www. international-alert.org/pdfs/lblp_Colombia.pdf. Ibid., pp. 288-289. Ibid., p. 289. Ibid. Ibid. See also, European Commission, Commission Approves Co-operation Actions for EUR 250 Million in Latin America, January 16, 2003, www.reliefweb. int/rw/rwb.nsf/AllDocsByUNID/c404af88ce1264d4c1256e1d005865ea. See Humanitarian Policy Group, Uncharted Territory: Land, Conict and Humanitarian Action, Summary from a Conference Hosted by the Humanitarian Policy Group (Humanitarian Policy Group, Overseas Development Institute, February 2008), www.odi.org.uk/hpg/meetings/ land-conference-note.pdf. Humanitarian Policy Group, Crisis in Kenya: Land, Displacement and the Search for Durable Solutions (Humanitarian Policy Group, Overseas Development Institute, HPG Policy Brief 31, April 2008): p. 4, www. odi.org.uk/HPG/papers/hpgbrief31.pdf.
3 4 5
VALUE CHAIN ANALYSIS:

International Institute for Environment and Development (IIED). Chain-wide Learning for Inclusive Agrifood Market Development: A Guide to Multistakeholder Processes for Linking Small-scale Producers to Modern Markets. 2008. www.regoverningmarkets. org/en/resources/global/chain_wide_learning_ guide_for_inclusive_agrifood_market_development. USAID. Conict-sensitive Approaches to Value Chain Development. microREPORT No. 101, May 2008. www.international-alert.org/publications/pub. php?p=382.
9 10 11 12
13
14
149
15 16 17
See note 13, p. 1. Ibid., p. 3. Marion Harroff-Tavel, LandA Key Issue for Humanitarian Agencies during Armed Conicts (International Committee of the Red Cross, July 2008), www.reliefweb. int/rw/lib.nsf/db900sid/ASIN-7G7NMH/$le/ICRC_ Land-A%20Key%20Issue%20for%20Humanitarian%20 Agencies.pdf?openelement. Ibid. Sphere Project, Humanitarian Charter and Minimum Standards in Disaster Response, 2004 edition (Geneva, 2004): p. 63, www.sphereproject.org. UNHCR, Water: Nary a Drop to Drink, UNHCR, Refugees Magazine, no. 105 (1996), www.unhcr.org/publ/ PUBL/3b582bc08.html. UNHCR Technical Support Section, Access to Water in Refugee Situations: Survival, Health and Dignity for Refugees, www.un.org/waterforlifedecade/pdf/unhcr_ water_brochure.pdf. See Katherine Houreld, In Sudans Refugee Camps, Tensions Rise Over Water, Christian Science Monitor, March 15, 2005, www.csmonitor.com/2005/0315/ p07s02-woaf.html (accessed February 2009). See also, West Bank Water Crisis Hits Hard in Refugee Camps, uruknet.info, September 9, 2008, www.uruknet. info/?p=47108 (accessed February 2009). Womens Commission for Refugee Women and Children, Dont Call it Shangri-La: Economic Programs for Displaced Populations in Nepal (May 2008): p. 7, www.womenscommission.org/pdf/np_econ.pdf. Swedish International Development Cooperation Agency (SIDA), Manual for Conict Analysis, SIDA Division for Peace and Security through Development Cooperation, January 2006), http://www.conictsensitivity.org/ node/100. Ibid., p. 10. Ibid., p. 11. Ibid. p. 12. World Bank, The World Bank Participation Sourcebook: Appendix I: Methods and Tools, www.worldbank.org/wbi/ sourcebook/sba104.htm. FAO, Chapter 6: Using Rapid or Participatory Rural Appraisal, in Improving Agricultural Extension: A Reference Manual (1997), www.fao.org/docrep/w5830e/w5830e08. htm. See note 28. Ibid. Ibid. Ibid. Ibid.
35
Bishnu Bhandari, Participatory Rural Appraisal (PRA): Module 4, (Institute for Global Environmental Strategies (IGES): Draft, 2003), www.iges.or.jp/en/pub/eLearning/ waterdemo/bhandari_m4.pdf (accessed February 2009). A Venn diagram typically consists of overlapping circles representing information that can be used to understand their relationships to one another. See note 35, p. 12. See note 28. Ibid. Rachel Locke and Karri Goeldner Byrne, Cotton Value Chain Case Study for Northern Uganda, USAID, microREPORT no. 91, January 2008), http://www.microlinks.org/ ev02.php?ID=22555_201&ID2=DO_TOPIC. American Refugee Committee, Choosing a Sub-Sector, Presentation to 2006 SEEP Annual Conference, www. seepnetwork.org/les/4679_le__3_ARC_SSS.ppt. UNDCP, Guidelines on Gender Mainstreaming in Alternative Development, Final Draft (2000): p. 19, www. unodc.org/unodc/en/alternative-development/gendermainstreaming-in-alternative-development.html. Telephone interview with Rachel Locke, July 15, 2008. International Alert, Local Business, Local Peace: the Peace building Potential of the Domestic Private Sector. Case Study: Burundi (2006): pp. 268-270, www.international-alert. org/pdfs/lblp_Burundi.pdf Ibid., p. 270. See note 23, pp. 4-5. World Bank, FAO and IFAD, Gender in Agriculture Sourcebook (2009): pp. 136-140, www.worldbank.org/ genderinag. Ibid., p. 37. See Thomas Bohnett, Returning Home and Starting Over in Kitgum, International Rescue Committee (January 31, 2008), www.theirc.org/news/returninghome-kitgum3101.html (accessed February 2009). See also, International Rescue Committee UK, Ugandan Farmers Re-Establish Links with Traders, February 21, 2008, www.alertnet.org/thenews/fromtheeld/237687/120359510957.htm (accessed February 2009). International Rescue Committee UK, Ugandan Farmers Re-Establish Links with Traders (February 21, 2008), www.alertnet.org/thenews/fromtheeld/237687/120359510957.htm (accessed February 2009). Ibid. Ibid. Ibid.
36
37 38 39 40
18 19
20
41
21
42
22
43 44
23
45 46 47
24
48 49
25 26 27 28
29
50
30 31 32 33 34
51 52 53
150
54
Womens Commission for Refugee Women and Children, Beyond Firewood: Fuel Alternatives and Protection Strategies for Displaced Women and Girls (March 2006), www. womensrefugeecommission.org/programs/rh/beyond. Ibid., p. 1. FAO, An Introduction to Selected FAO Programmes Related to Non-wood Forest Products, www.fao.org/docrep/ W3735E/w3735e31.htm. Brent Swallow and Sophie Ochola, Agroforestry, Nutrition, and Health, in Understanding the Links between Agriculture and Health, International Food Policy Research Institute, 2020 Focus no. 13 (May 2006): p. 1, www.ifpri.org/2020/focus/focus13.asp. See note 1, p. 16. Ibid. Ibid. See note 23. See note 1, p. 28. Ibid. Ibid. Vtrinaires Sans Frontires, www.vsfe.org/cgi-bin/twiki/ bin/view/Public/AboutVsfe. IFAD, Emergency Livestock Interventions in Crisis and Postcrisis Situations (January 2009): p. 6, 10, www.ifad.org/ lrkm/events/cops/papers/emergency.pdf. Cathy Watson and Andy Catley, Livelihoods, Livestock and Humanitarian Response: The Livestock Emergency Guidelines and Standards, (Humanitarian Practice Network, Overseas Development Institute, Network Paper no. 64, December 2008): p. 2, www.odihpn.org/report.asp?id=2962. See note 5. FAO, Livestock Policy and Poverty Reduction, Livestock Policy Brief 04 (2008): pp. 4-5, ftp://ftp.fao.org/docrep/ fao/010/i0265e/i0265e00.pdf. Ibid., p. 5. See note 5, p. 16. Gaim Kibreab and Alan Nicol, Returning Thirsty: Water Supply, Livelihoods and Returnees in the Gash-Barka Region, Eritrea, (Overseas Development Institute Water Policy Programme, Water Policy Report no. 1, 2001), www.odi. org.uk/resources/projects/reports/2002/01/water-livelihoods-returnees-gash-barka-region-eritrea.pdf. Telephone interview with Andrew Catley, August 8, 2008. The following livestock interventions are based in part on note 66, pp. 2-3. See note 66, pp. 2-3. See note 67. See note 66, p. 10.
78 79 80 81 82 83
Ibid., p. 7. See note 69, p. 5. See note 66, pp. 1-2. See note 5, p. 64. See note 47. E.F. Guye, Gender Aspects in Family Poultry Management Systems in Developing Countries. (No date): p. 2, www.fao.org/ag/againfo/themes/en/infpd/documents/ papers/2004/12gender318.pdf. Ibid., p. 3. HORIZON Solutions Site, North Kivu, DR Congo Chicken Egg Project Provides Food for Thought (March 28, 2008), www.solutions-site.org/artman/publish/ article_391.shtml. Ibid. International Committee of the Red Cross, Farming Through Conict (September 2007): pp. 35-36, www.icrc.org/Web/eng/siteeng0.nsf/htmlall/economicsecurity-feature-291107/$File/Farming%20Through%20 Conict.pdf. See note 5, pp. 65-66. Ibid., p. 61. Ben Ochan, Beekeeping in Uganda, New Agriculturalist Online, www.new-ag.info/00-5/focuson/focuson2.html (accessed February 2009). Andrew Catley et al., Participatory Impact Assessment: A Guide for Practitioners, (Feinstein International Center, Tufts University, October 2008): p. 9, https://wikis.uit.tufts.edu/conuence/ display/FIC/Participatory+Impact+Assessment-+a+Guide+for+Practitioners. Ibid. Ibid., p. 11.
55 56
57
84 85
58 59 60 61 62 63 64 65 66
86 87
88 89 90
67
91
68 69
92 93
70 71 72
73 74 75 76 77
151
Micronance Interventions
INTRODUCTION
Lack of credit and cash is one of the most signicant constraints on displaced people pursuing a livelihood. Unanticipated events can be better managed if refugees, internally displaced persons (IDPs) and returnees have access to micronance services, such as savings, loans and insurance. Micronance services in early recovery and development settings form a vital part of an integrated approach to sustainable livelihoods and poverty alleviation, not only for the economically active displaced, but also for the most impoverished groups. By going beyond the traditional relief-based culture of aid and assistance, micronance offers a dignied way to support displaced people and foster self-reliance. Micronance interventions involve crossover programming that spans both relief and development efforts. In most contexts in which the humanitarian community has tried to provide micronance services, there are no formal banking institutions or functional regulation systems. Micronance has shown the potential to support appropriate livelihood strategies of conict-affected women and youth, enabling them to be active agents in their own survival and development. Savings programs are often their greatest need, as these programs can allow for the safe storage of income without the added pressure of taking on a loan. This chapter describes the range of available micronance products and outlines the potential benets of micronance in displacement and early recovery contexts as well as the false assumptions and mistakes observed in poorly planned interventions. It offers recommendations to help ensure age-, gender- and ability-awareness and conict-sensitive practices in micronance programs. It guides practitioners in
152
MICROFINANCE INTERVENTIONS
Small loans can help refugees establish businesses, like this one in Colombia, that make them self-sufcient. Womens Refugee Commission/Diana Quick
identifying the needs of their target population, choosing the most appropriate interventions for clients and deciding how to monitor and evaluate them. Because micronance interventions are highly complex, this chapter provides general guidelines and includes resources that can be used to develop step-by-step interventions. The rst stage of any micronance intervention must be a participatory mapping of existing nancial mechanisms within the client community. Micronance institutions and service providers working with conict- and disaster-affected people should identify programs to build capacity, address inequalities and vulnerabilities and promote empowerment through a holistic process of social and economic recovery and development. Where appropriate, clients should be offered an appro-
priate graduated intervention that may begin with aid, subsidies, training and support services and lead to group-based savings and credit associations and, nally, to an individual relationship with an established semiformal or formal nancial services institution. Micronance interventions should take a long term perspective, seeking to help clients begin and grow their businesses while in camps and prepare for repatriation, resettlement or integration. Ideally, this should involve linkages to programs in refugees and IDPs countries or areas of return. There is no one-size-ts-all approach to planning, implementing and evaluating a micronance intervention. Recommended tools and guidance included here provide exible frameworks for discussion, dialogue, planning and innovation.
153
KEY LEARNING POINTS

Market assessments for demand, design and monitoring are essential. The most important factor in assessing whether or not to do micronance is the demand for services. It is critical to ensure the sustainability of micronance programs that can be supported by local ownership once the implementing agency transitions out. Institutions already offering micronance services in the area may be better positioned to expand their services to include the displaced or returnee populations. In addition, these existing institutions may provide strong partnership opportunities. The provision of micronance services in early recovery development settings should be viewed not as a relief service, but as part of a participatory, rights-based approach to economic development that requires and demands accountability. Micronance is not a substitute for grants or subsidies, which may be more appropriate, depending on the situation and context. It is ideal if micronance programs have a social mission and an explicit commitment to poverty reduction if they are serving crisis-affected groups. Micronance services should be separate from relief programs. Micronance is not a cure-all, and there is no one-size-ts-all formula for success. Interventions must address specic contexts following market and needs assessments to determine whether the local market can support new or expanded businesses. Without such conditions, clients may not be able to generate enough income to repay their loans and/or gain self-sufciency. Not all poor and marginalized displaced people are appropriate candidates for micronance, and particularly not for loans or credit. Programs should be progressively stepped so that displaced persons are graduated to different micronance products as their needs and capabilities change. Women and youth clients must be viewed and supported as money managers and decisionmakers over their own nancial resources. Micronance interventions may inadvertently do harm, exposing women, youth and vulnerable populations to further risk.
154
ESSENTIAL ELEMENTS
Denitions Business development services (BDS) are provisions for micronance clients to increase the potential for their success in their business endeavors. Services can include business training, nancial literacy, technical and marketing assistance, market linkages, access to technology, advocacy, advice and mentoring.1 Collateral is an asset pledged by a borrower to secure a loan, which can be repossessed in the case of default. Formal micronance includes micronance services provided by public and private banks, insurance rms and nance companies subject to banking regulations and supervision. Informal micronance includes micronance services provided not by institutions, but by organizations or individuals within a community with no ofcial legal status and without external intervention. A merry-go-round is a savings group in which each member commits to a weekly payment into a kitty. The sequence of the kittys recipients can be determined randomly, for example, by picking numbers out of a hat or by structured rotation from member to member. These informal savings groups may also offer loans, and may be known as RoSCAs (Rotating Savings and Credit Associations) and ASCAs (Accumulating Savings and Credit Associations), among others. See also self-help groups. Microcredit is dened by the Grameen Bankthe Bangladesh community development bank that has popularized micronanceas small loans to very poor people for self-employment projects that generate income, allowing them to care for themselves and their families.2 The Foundation for International Community Assistance (FINCA), a leading provider of nancial services to lowest-income entrepreneurs, denes microcredit as provision of working capital to fuel the productivity of the worlds poor majority.3 Microcredit does not necessarily require donor nancing, a fact illustrated by the number of micronance institutions that are self-funding through loans from a variety of sources, including commercial banks, client savings and even equity investment from outside investors.4 Micronance is a term for nancial services provided for people in poverty who are not served by banks and other formal nancial institutions. Microinsurance is the protection of low income people against specic perils in exchange for regular premium payments proportionate to the likelihood and cost of the risk involved.5
155
Microloans are very small loans to the unemployed, poor entrepreneurs and others living in poverty who are not considered bankable by formal lending institutions, as they lack collateral, steady employment and a veriable credit history. Micronance institutions (MFIs) are formal providers of micronance services. The term has come to refer to a wide range of organizations, including nongovernmental organizations (NGOs), private commercial banks, partially state-owned banks, nonbank nancial institutions, credit unions and cooperatives. Micronance organizations (MFOs) are often synonymous with MFIs, but are more generally applied to NGO-created entities. A self-help group (SHG) is a term widely used in South Asia and beyond to describe communitybased savings groups. Solidarity lending is the provision of collateral-free loans to small groups of people (usually three to ve), using peer pressure as the primary motivator of repayment. It works best in rural communities, rather than in urban areas where mobility is greater and social capital weaker. Stepped lending is a process by which borrowers who repay loans on time are eligible for increasingly larger and perhaps more sophisticated loans.
The Micronance Gateway6 and ACCION International7 provide glossaries for the extensive terminology used by the micronance industry. In keeping with much of the micronance literature, this chapter primarily uses the term client rather than participant to describe users of micronance services.
Generalised Systembetter known as Grameen IIis based on core convictions about nancial services and the poor: Poor people always pay back their loans; Credit for the poor creates self-employment and access to it should be a right; Collateral as a way to secure loans is outmoded and can and should be abandoned in lending to the poor; Poor people can work together in groups to help each other manage their borrowing; and Financial services, and credit in particular, are a powerful weapon against poverty and a powerful means to empower women.8
KEY PRINCIPLES OF MICROFINANCE

In 2000, Bangladeshs Grameen Bank, the worlds best-known lender to the poor and inspiration for the global micronance movement, announced major changes to its operations. The Grameen
156
TYPES OF MICROFINANCE PROVIDERS

Variations on group savings and credit schemes range from very small, self-selected groups, which rely on personal relationships and reputation as selection criteria, to large, highly structured rulebased groups. Credit Unions / Savings and Credit Cooperatives / Financial Cooperatives are not-for-prot memberowned and -governed nancial institutions that are typically managed by paid staff who may or may not be assisted by volunteer member committees. Credit unions and nancial cooperatives are typically savings-based, that is, they fund their loan portfolio with member deposits as opposed to external nancing. Rotating Savings and Credit Associations (RoSCAs) are community-based nancial arrangements involving a group of savers contributing a set amount to a common fund on a regular basis. Small loans are made from the fund to group members, which, when repaid, become credit for another member. RoSCAs provide low-cost credit, efcient service delivery and transparency. RoSCAs cannot provide credit matched to investment needs, business or emergency loans when required, or a real return on savings invested. Default is fairly common after a member has received his or her share. RoSCA loans are usually too small for MFIs to handle on an individual basis. In some cases, the store of loanable funds derived from these private resources can be augmented by formal loans from banks as groups develop. However, this is unlikely in displacement and early recovery contexts, and may carry additional risk for the group. Other variations of RoSCAs include susu, found in West Africa and the Caribbean, and tontine, used in Europe in the past, and also found in West Africa.9
Accumulating Savings and Credit Associations (ASCAs) are time-limited, informal micronance groups that offer short-term loans and insurance, using savings as the sole source of loan funds. ASCAs hold the savings of members who may apply for periodic loans from the accumulated funds. They are more complex than RoSCAs, and normally require records (written or memorybased), as the members do not all conduct transactions in the same way. One member is appointed to manage the fund, and records are kept and surpluses are lent out. Some borrow while others only save, and borrowers may borrow different amounts on different dates, for different periods. ASCAs work most effectively when they are time-bound. At the end of a designated periodusually six to twelve monthsall outstanding loans are repaid and the accumulated amount plus interest is distributed to group members. An ASCA project cycle should span at least 15 months for a 12-month savings cycle in order to allow for time to mobilize savings groups, train members who will manage the fund in record keeping, and distribute necessary materials. ASCAs are found most frequently in South Asia. Village Savings and Loan Associations (VSLAs / VS&LAs) are ASCAs in which self-selected groups of around 10 to 25 people invest their savings in a loan fund, from which members can borrow. Interest-bearing loans are initially provided for one to three months but, over time, may increase to six months or more. By marshalling small local pools of capital to satisfy household cash-management needs, VSLAs can provide immediately sustainable and protable savings, insurance and credit services to people who live in places where banks and MFIs do not have a presence. VSLAs tend to serve the very poor whose income is irregular and less reliable and who may not be full-time business people. VSL Associates is a consortium of practitioners dedicated to spreading the Village Savings and Loan ASCA
157
methodology.10 The VS&L methodologybased on RoSCA principlesis now used around the world and was pioneered by the NGO CARE in Niger. The key characteristics of VSLAs are as follows: savings-based nancial services with no external borrowing or donations to the loan portfolio;11 self-managing; having simple and transparent operations; having exible loan sizes and terms; having very low group management costs met through group earnings;12 retaining earnings in the group and local community;13 meeting the basic needs of clients for simple, accessible savings, and credit and insurance facilities; having programs locally staffed and managed after very short periods of orientation; spontaneously replicated and exibly adapted to the basic model.
158
STRENGTHS AND WEAKNESSES OF THE VS&LA MODEL
Strengths: VS&LAs have the ability to deliver appropriate nancial services in remote areas marked by weak economic activity, on a sustainable basis and at low establishment cost. The methodology is adaptable to local conditions and needs, and is transferable to almost any environment. VS&LAs can serve nonliterate people as well as literate people. They do not need experts and expensive staff to implement and can easily be integrated into a nonnancial services programme. VS&LAs have operating expenses close to zero, so that they can afford to make extremely small loans. They have an excellent safety record, i.e., there is minimum embezzlement of group funds and loan loss (lock-boxes, key holders and counters ensure a high level of transparency and investment in long term activities). The system of transactions is quick, simple and transparent, and ensures high returns on savings. VS&LAs cultivate a nancial management culture. VS&LAs allow participants to acquire useful lump sums of capital at a predictable time and invest them in longer term activities. All sums paid by the VS&LA stay in the village; there is no drainage to headquarter locations.14 Weaknesses Loan amount is small, especially at the beginning of the cycle. Loan period is usually short and limits long-term investment. Loan funds are not always available at appropriate times.15
159
MICROFINANCE PRODUCTS
BUSINESS LOANS
Business loans are the key economic development product used in micronance interventions. They assist clients by providing seed capital necessary to launch income-generating activities and enable clients to build a credit history. They can also help clients avoid predatory lending and lay the groundwork for economic stability through savings and microinsurance products. There are many types of micronance loans, and there can be variations within one loan. Loans can include individual loans, salary loans, group lending, solidarity guarantee loans, Grameen loans, VSLAs and microinsurance loans.
CONSUMER LOANS
Consumer loans assist clients with their basic living costs. While these loans can be an option, it is important for micronance interventions to be supplemented with humanitarian assistance when needed so that micronance products lead to long term livelihoods for displaced groups. Loans used for consumption that do not contribute to selfreliance can place clients at greater risk of vulnerability and/or aid dependence.
CASE STUDY Stepped Approach to Improving Livelihoods (SAIL)16
Designed by the American Refugee Committee (ARC) as part of micronance development interventions in Liberia, Sierra Leone, Rwanda and Sudan, the Stepped Approach to Improving Livelihoods (SAIL) provides refugee populations, and in particular women, with business training and access to capital through a targeted program that offers loans, no-interest loans or grants, and, depending on the ability to repay, credit management capability and business opportunities. SAIL provides opportunities for refugee women to build a positive credit history that enables them to use micronance and microenterprise development services from linked providers in their area of return under the R2R (Refuge-to-Return) program strategy. ARC has successfully provided loans to many clients worldwide, including Liberian and Sierra Leonean refugees in Guinea and Liberia, Sudanese refugees in northern Uganda and Burmese refugees in Thailand. ARC has built leading MFIs in Sierra Leone, Liberia and Southern Sudan, which have served displaced people following their return.
160
SAVINGS
Although some poor people are good candidates for loans, many more are in need of savings services. Savings products should be limited in scope but specic to the diverse needs of displaced groups. It is critical that they are manageable and adequately staffed. The Consultative Group to Assist the Poor (CGAP) warns that it can be challenging for MFIs to manage effective delivery of more than a few products, especially in the beginning due to strains on management and staff capacity that negatively affect both the MFIs performance and its client service.17 It is wiser to focus on the delivery of high-demand, complementary products that can be used in different combinations, for example, a passbook savings account permitting unlimited transactions and a xed deposit account (including those with one-, two- and three-month maturities).18 For clients, security and the physical and nancial accessibility to savings mechanisms are most important.19 Clients who require accessibility may resort to more informal savings mechanisms that do not offer security for their deposits. Savings mobilizationusing savings to lend out to other clientsrequires a higher degree of complexity and oversight than credit operations because it is the clients money that is put at risk, not that of the MFI. Mobilizing savings is often disallowed by law except for certain types of institutions, such as banks. However, if an institution is legally allowed to mobilize deposits, The key to large-scale savings mobilization from the public is not many products, but rather a few well-designed and effectively delivered products that clients can use to customize their savings portfolios in ways that meet their particular needs.20
MICROINSURANCE
The provision of insurance is an emerging trend in the micronance industry. While isolated programs indicate its potential, refugees, IDPs and returnees remain widely unserved. When insurance is available to displaced people, it most often takes the form of life insurance policies made available by MFIs. They may provide for the partial or total repayment of credited funds, funeral expenses, a lump-sum payout or continued, in-kind support services to the policyholders survivors. The insurance policy not only protects the interests of the policyholder, but also those of the MFI that would otherwise have to write off unmet debts. MFIs should partner with insurance agencies to offer insurance, as government regulations often preclude MFIs from engaging in the direct provision of insurance products. A Bill & Melinda Gates Foundation-sponsored study on the impact of microinsurance in Ugandawhere it is relatively well-established due to the efforts of FINCAfound that having microinsurance encourages individuals to seek earlier health treatment and may increase the survival rate of small businesses.21
161
POTENTIAL BENEFITS OF MICROFINANCE INTERVENTIONS

There is a general lack of literature on the impact of micronance.22 This is particularly the case in displacement and recovery contexts. However, there is considerable emerging evidence that micronance products that respond to demand and are savingsled have the potential to: support clients survival strategies during a conict or disaster;23 prevent the collapse of small businesses and household economies;24 contribute to the rehabilitation of small businesses and household economies;25 reduce unemployment and underemployment;26 break the pattern of using remittances for immediate consumption; break cycles of indebtedness and dependence on money lenders; stimulate the participation of women and youth in the market economy; encourage entrepreneurial self-employment and thereby reduce exposure to exploitative labor; prepare women to better withstand nancial crises; increase womens intra household decisionmaking powers; provide women and youth with a credit record and a repayment history needed to apply for bank loans; increase the likelihood of school enrollment; improve household food security; promote asset creation; reduce vulnerability to sexual and gender-based violence, domestic violence and negative coping strategies, such as transactional sex; enhance womens capacity to participate in civic activities; improve self-esteem, awareness of human rights and leadership skills; enable entrepreneurial women and youth to become role models; build skills and experience needed upon repatriation or resettlement; promote the economic contribution of refugee entrepreneurs to benet host communities and local economic development. In addition, there is emerging research that demonstrates that micronance institutions can be successful, as measured by regular MFI standards, in conict-affected countries; that MFIs have been successful in lling the gap in the availability of nancial services in conict-affected countries; and that many MFIs in conict-affected countries are as strong, if not stronger, on standard MFI performance than MFIs operating in conict-free environments.27 The most successful micronance programs are implemented by organizations with substantial micronance expertise that offer a variety of products and ensure that clients either have or are taught business development skills.
162
CASE STUDY Micronance Partnership Success in Uganda
The Alchemy Projecta Tufts University initiative to improve income generation interventions in support of refugee/IDP livelihoodspartnered with Uganda Womens Effort to Save Orphans (UWESO), a Ugandan NGO.28 Established by the wife of the Ugandan President, UWESO insists that at least 80 percent of all clients, as well as the chair and treasurer of each savings group, are women. An evaluation in 2004 showed that many clients had improved food security and been enabled to employ labor.29 UWESOs partnership with the Alchemy Projectas well as with CHF Internationalled to an extension of its loan program to IDPs in conict-affected northern Uganda. A system was established to enable clients with good credit histories to transfer their credit ranks to other MFIs or banks either in the region or after they return to their places of origin. Linking to traditional MFIs or banks can ensure that clients with a sound credit history can access larger loans.30 A large private sector partnership now underpins the UWESO loan program. In 2006, Barclays Bank announced substantial support to UWESOs work, expressing hopes that its philanthropy might ultimately help members of community nance programs to one day graduate towards the commercial sector for credit.31
COMMON SHORTCOMINGS OF MICROFINANCE INTERVENTIONS

Inadequacies occur because micronance interventions: are often implemented by organizations without the requisite expertise; are often implemented by organizations that are also implementing relief assistance programs, which complicates repayment systems as clients mistakenly view micronance loans as aid; are often given in contexts where the disbursement of grants is also taking place; however, this may not present a problem if micronance interventions use separate branding and precise targeting; often have loans that are too small to support businesses to start up; may cause clients to borrow from multiple loan providers due to lack of coordination, and end up deeply indebted; pay too little attention to client selection; may experience a conict between often competing objectives, for example, serving the very poor versus the need to target the economically viable for program success and sustainability; may lead to challenges in group lending and group cohesion, particularly in the displacement context; depend on group solidarity as collateral to replace what in commercial banking would be a material form of guarantee.
163
CASE STUDY IRC Learns Lessons from a Failed Kenyan Intervention32
In 1992, the International Rescue Committee (IRC) established a micronance program in Kenyas Kakuma camp, one of the worlds largest refugee camps. In 2002, the program was closed down, as IRC recognized the absence of minimum conditions required for successful implementation of micronance interventions in refugee settings. The agency acknowledged a lack of organizational capacity, an inability to dene sustainability, difculty in reaching intended clients and the impact of Kenyan government policies restricting refugees engagement in the market economy.
UNDERSTANDING THE DYNAMICS AND AREAS OF CONCERN FOR MICROFINANCE INTERVENTIONS

MICROFINANCE INTERVENTIONS IN SETTINGS OF CONFLICT
Concern Worldwide, an agency with considerable experience on micronance in displacement and recovery contexts, warns that: There has been a history of unsuccessful micronance interventions in war-affected contexts, characterized by rapid startup, disbursement of a large volume of loans, high levels of default, limited capacity for loan recovery and organizational collapse within a few years. The cause is all too often traced back to underfunded and hurried design and planning, based on inaccurate preconceptions.33
In conict-affected environments, most micronance providers will not provide loans to refugees or IDPs in general as they are assumed to be too high risk, transient, lacking in collateral and their incomes too low and inconsistent. Refugee and internally displaced women and youth are particularly unlikely to achieve direct, individual relationships with formal or even semiformal micronance institutions. Credit may also not be the most appropriate or requested nancial service for displaced women and youth, many of whom are understandably risk-averse while trying to survive or rebuild their lives in insecure environments with few consistent income-earning opportunities. A research project funded by the UKs Department for International Development (DFID) found that micronance interventions generally have an undistinguished record in war-affected countries. Researchers noted that micronance projects often have poor repayment discipline, are confused about the differences between grants and credit, and that projects often collapse, having had little or no sustained positive impact on the lives of
164
clients. Researchers heard many complaints from clients about time wasted in group meetings, the exclusion of the most impoverished due to mistrust from other group members, inheritance of other peoples problems as soon as one joined a group and the laborious process of approving loans in weekly or monthly meetings. When NGOs withdrew their support of a micronance initiative, clients sometimes refused to repay the departing NGO. Frequently, weak community-based organizations collapse within a few years. MFIs are often reluctant to move into areas where relief and rehabilitation organizations have been unable to recover loans, or where loans turned into grants when it was hard to establish repayment discipline.34 If a micronance program is to promote stability, it is important to ask: What is the initial risk that the project will have a negative impact on conict dynamics? If implemented, can the proposed project reduce the risk of structural factors contributing to violent conict and instead strengthen the structures working for peace, for example, by supporting institutions to deal with grievances? Will the program increase security or a sense of security? What will be the impact on gender equality and the roles and interests of women and men? How can the peace and security potential of women and men be strengthened through the project?35
GENDER ISSUES AND 36 MICROFINANCE

Although micronance programs have the potential to signicantly contribute to womens empowerment, this is not an automatic consequence of providing credit and forming savings groups.37 Womens pursuit of economic activities and their ability to generate income are seriously constrained by gender inequalities. In many cases, benets from micronance may be marginal and women may even be disempowered.38 It is important to question assumed linkages between access and empowerment: Registration of loans in womens names does not necessarily mean even participation in decisions about loan application(s,) as men may simply negotiate loans with male programme staff as an easier way of getting access to credit. High repayment levels by women do notindicate that women have used the loans themselves. Men may take the loans from women or women may choose to invest the loans in mens activities. Loans may be repaid from male earnings, through women forgoing (their) own consumption, or from income or borrowing from other sources. High demand for loans by women may be more a sign of social pressure to access outside resources for their in-laws or husbands than empowerment.39 Additional gender-related risks involved in micronance interventions: Rapid expansion of micronance programs may contribute to market saturation in traditionally female economic activities and therefore to declining prots.40 Micronance group lending may place severe strains on womens existing networks if repayment becomes a problem.41
165
Engagement in micronance meetings may be so time-consuming it takes women away from other social and political activities. Credit debt may lead to severe impoverishment, abandonment and put serious strains on networks with other women.42 Women may forgo their own consumption needs because of pressure to save. The poorest women are the most likely to be explicitly excluded by programmes and also peer groups where repayment is the prime consideration and/or where the main emphasis of programs is on existing microentrepreneurs.43 The poor may have their assets conscated because of nonrepayment. The Alchemy Project warns against excessive pressure to repay and notes that there have been cases in which women have been so desperate to repay in order to stay in micronance programs that they have engaged in prostitution or turned to loan sharks.44 Womankind Worldwide,45 a UK-based charity, challenges the assumption that credit schemes are a cost-effective, efcient, easy-to-administer and sustainable method of poverty alleviation. The agency argues that: The issue of inter household relations of power and rights are rarely addressed.46 Few credit and savings schemes manage to cover costs and accumulate capital.47 There is a silence around the true costs of running credit and savings schemes, and gains are invariably romanticized.48 The notion that these schemes lead to empowerment is problematic: By increasing the burden on women, and making them responsible for repayment, such schemes use women as instruments to achieve efciency and sustainability, while actually exacerbating their poverty and vulnerability.49
NGOs and womens organizations often become involved in a policing role associated with repayment, instead of focusing on the reasons why clients face barriers that can preclude their ability to repay loans.50 Attempts should be made to address the macrolevel reasons for poverty and inequality on a policy level: Many service delivery-oriented NGOs do not engage in dialogue with policymakers, and rarely consider economic issues within the wider context of the community as a whole.51 Access to credit is no guarantee that women will not become more vulnerable and fall further into debt. It is important to remember that the impact of a savings and credit program on the decision-making power of a female client may be signicant in one context but may make no difference in cultures lacking in basic rights for women.52 Economic indicators, such as repayment rate, income level or loan totals, must never be assumed to be reliable empowerment indicators.
166
CASE STUDY Exaggerated Micronance Success in Iraqi Kurdistan 53
Agencies involved in micronance frequently include case studies of female clients in promotional materials. The website of an agency working to assist displaced Kurds in northern Iraq chronicled the entrepreneurial success of a woman referred to here as Hewar. One of tens of thousands of women who had lost their husbands and community during Saddam Husseins anfal campaign of forced resettlement and razing of Kurdish villages, Hewar had taken on a series of increasingly large loans. After engaging in several microenterprises, it was reported that she had deed gender boundaries and became a tractor owner-operator. The agency credited its intervention with empowering Hewar to earn substantial income from plowing contracts. Yet the reality was far different; the loans had been used by her brothers-in-law. They had proted from using the tractor, but when it broke down, they returned it to Hewar. Unable to either repay her latest loan or to repair the tractor, she took a risk by selling the jewelry her husband had given her as part of bridewealth payments. By using her last remaining assets, the tractor had been briey restored to life, but still went unused. Hewar and her children regretted ever having gotten involved in the micronance program.
VULNERABLE GROUPS
It is critical to ensure that in addition to including women in micronance, other so-called vulnerable groups, such as youth, older people, people with disabilities and/or living with infectious diseases, ex-combatants and others who may have barriers to livelihoods, are given equal consideration in micronance.
PRELIMINARY STEPS
Because micronance interventions are complex and require a long term commitment, it is essential to identify whether or not micronance is a suitable livelihood intervention for the displacement context. The success of micronance interventions is dependent upon the ability of clients to repay their loans, generate income and reduce vulnerability. As a result, it is important that adequate provision of training is given that will provide a basic foundation for literacy, numeracy and basic nancial education. For clients who already have this knowledge and demonstrate strong nancial literacy, it may be important to build upon their knowledge and experience with the provision of business development services (BDS). However, it must be noted that BDS may be very costly,
167
particularly for newer MFIs, so these services may need to be postponed until the MFI has recovered its costs and is in a more stable position. In order to determine the appropriateness of a micronance intervention, practitioners should assess whether the context, resources and needs are appropriate. It is essential that the following conditions are met, particularly for post-conict environments: 1. Sufcient economic activity that can use credit services. 54 2. A relatively stable client population.55 3. A certain degree of political stability.56 4. A relatively stable economy with manageable ination. The U.S. Agency for International Development (USAID) has developed post-conict principles centered around nancially viable lending,57 which can be used as a guide: 1. Offer Services that Fit the Preferences of Poor Microentrepreneurs a. Loans should be short term and compatible with the businesses, markets and income/ expense patterns of microentrepreneurs. b. Stepped lending, in which loans are small and repeat, allowing clients to take on slightly larger loans, as needed. c. Micronance services are provided in a clientcentered manner, working with clients who are unaccustomed to banking services and who might otherwise be considered undesirable customers to traditional banks. 2. Streamline Operations to Reduce Unit Costs a. Standardized and simplied processes for delivering credit and savings services. b. Modest buildings and vehicles. Just as MFIs dont act like banks, they dont look like them either.
c. Front-line staff (credit and savings ofcers) who are close to their clients in terms of education (and hence salaries). 3. Motivate Clients to Repay Loans a. Repeat and stepped lending: There may be no greater repayment incentive than that of having continued access to nancial services. b. Mutual-guarantee groups, which provide peer pressure and peer support to repay. c. Discounts for prompt and full repayment, penalties for delinquency, and other nancial incentives and disincentives. d. An image of being a serious, permanent MFI. Temporary micronance projects which are not serious about loan collection, costcontainment, and even revenue earning will quickly be seen by clients as relief organizations to whom repayment is not needed. 4. Charge Full-cost Interest Rates and Fees To become a permanent institution, an MFI must cover its long term costs. While losses are expected and often subsidized by donor startup funding for a yearthey cannot continue indenitely. a. Recognize that the unit costs of delivering one hundred $50 loans will be higher than delivering one $5,000 loan. Thus, a basis for comparison is not the interest rate charged by commercial banks for the latter. b. Recognize that microentrepreneurs have relatively high rates of marginal productivity of capital, even in post-conict settings. In other words, they are able to achieve rates of return on capital that are much higher than those of bigger businesses. 5. Achieve Scale MFIs could fulll the rst four principles and yet lose money if they are working off a small base of clients. Thus, scale is necessary, not only to achieve breadth of outreach, that is, to help many people, but also to achieve sustainability.58
168
PRECONDITIONS OF ANY MICROFINANCE INTERVENTION

PARTICIPATORY MARKET RESEARCH The essential initial task in planning a micronance program is determining the nature and level of demand for nancial services and what savings and credit mechanisms are already in place. It is important to ask would-be clients questions such as: Do people save? If so, in what ways? How and where do they save cash? What range of offered nancial services are they aware of? Can they list the local or camp-based groups and organizations that are organized around credit or savings? What are their relationships with local nancial systems and how do they perceive them? Do women and men have the same access to existing services? Do women and men want the same services? Are some programs or institutions mainly for men? If so, what do men gain from them? What do women feel they lose due to their lack of participation? Are there programs or groups exclusively for women? If so, what do women gain from them? What do men feel they lose due to their lack of participation? Are there any providers of entrepreneurial training? What are the credit, savings and investment needs of each client stakeholder group? Participatory market research interviews or focus groups should take gender considerations into account in setting up a condential interviewing
process. Answers given as to how and where interviewees save their cash may be different depending on who is in the room or within earshot and whether the interviewer is male or female. Steps must be taken to assure the privacy and condentiality of information provided by interviewees. Market research participants may not want their relatives to know their nancial objectives or experiences with nancial services. Before launching any micronance program, be sure to: Ensure that a Micronance Intervention Is Necessary If there is simply a need for a cash infusion into the community, a short-term intervention, such as cash- or food-for-work, relief substitution or incentive work may be more appropriate. Because the nature of micronance programming is long term, it is fundamental to ensure that any implemented programs will be around a long time and are able to continue with local ownership once implementing agencies transition out. Micronance interventions require expertise and must build the capacity of local stakeholders to ensure program sustainability. Further, interventions may be cautioned if informal systems, such as remittance income ows or RoSCAs, already exist and have established relations of trust between members.59 If grants are provided in lieu of a micronance intervention, ensure that the foundations are laid for sustainable development that will enable micronance programs to take place later.60 It should be noted that it is common for grant programs to be disguised as credit programs. CHF International warns that a credit program managed by an organization that is not serious about loan recovery will, in actuality, become a grant program and can do more damage than good.61
169
In many contexts, a range of external agencies have each launched their own micronance intervention. Lack of coordination between various schemes, differing rules and regulations, and variable insistence on meeting repayment schedules both confuse potential clients and allow people to play one scheme off against the other. At the same time, while coordinated efforts can be helpful, MFIs should be competitive, which is good for the client over the long term. Ensure that the Timing Is Right for a Micronance Intervention Post-conict situations are unpredictable and usually not conducive to micronance. Not only are some MFIs wary of lending to people in displacement contexts, the targeted population may be too vulnerable to adequately take advantage of loans immediately following a crisis. Institutions may be required to operate in an environment characterized by continuing violent conict, limited investment opportunities, high ination, a weakened banking system and high unemployment. Political insecurity and the lack of the rule of law, high population mobility and damaged social capital also affect micronance operations. Monitor the Security Situation Conict sensitivity is an essential component of micronance programs that have a social mission to promote stability and minimize the tensions between different socioeconomic groups. Analysis of conict dynamics is an essential part of all micronance program phases in humanitarian settings. Incidents of violence or resurgent conict should be closely monitored and micronance program participants and staff should be prepared to adjust their activities accordingly. Newly arrived humanitarian agencies responding to a crisis should carefully consider micronance
as an intervention. In cases where basic needs for food and shelter are unmet, and with many displaced households living in absolute poverty, credit is not an appropriate rst response. Displaced people must rst receive food and basic housing assistance. Only when these conditions have been met are people able to take on credit as a means of starting or expanding microenterprises. If credit is offered too soon, loan funds will be used to buy food, pay for housing and pay off debts. Micronance can only work if clients are able to repay their loans, and for that there must be a sufcient local economy in which members of the community are able to modestly support microenterprises. Identify Existing Micronance Providers In most crisis environments, it is not advisable to duplicate parallel services where other micronance providers exist and are serving similar target client groups. Where possible, aid agencies should develop relationships with local micronance providers for collaboration. Areas where NGOs can be of assistance may include providing supplemental employment readiness training in literacy, numeracy and basic nancial education; channeling participants from a vocational training program to the micronance institution; and assisting with client selection, such as those at risk of or survivors of genderbased violence. Ensure Micronance Expertise Is Available before Implementing an Intervention Micronance is a specialized eld that needs both banking and development skills, a mix not commonly found in the humanitarian community. These skills often require specialized training. Many organizations attempt to implement micronance programs without the institutional capacity or expertise required. Organizations that are small or traditionally
170
focus on other areas should seriously consider whether they have the capacity and commitment to establish an MFI. Local implementing staff should have at least basic training in the principles of micronance and be nancially literate. Credit ofcers should have a greater level of competence in nance. They must be able to assess loan applicants and business proposals for feasibility. Members of middle and senior management must have expertise in micronance and a track record in loan portfolio management, and be able to closely manage operational costs and maintain high client-staff ratios. The nal report of the Alchemy Project warns that: Unqualied agencies that try to provide microcredit to refugees and then fail, or weak programs that promote bad practices, create problems for the refugees and undermine the ability of more qualied agencies to implement effective programs. Weak programs will also discredit the idea of using microcredit for refugees, leading to reduced donor funding. Industry experts emphasize that before attempting to provide microcredit services, agencies should have good track records in micronance, and considerable technical support. Microcredit should not be treated as a short-term NGO program that will end when the funding runs out. Stopping and starting a microcredit program does more damage than good, and undermines the credit culture.62 Ensure that the Micronance Intervention Is Demand-driven and Savings-led Helping clients save should be a priority. Safe savings facilities can help build an asset base, provide emergency funds and enhance negotiating power. Informal Accumulated Savings and Credit Associations (ASCAs) may provide higher
rates of return on member savings than formal banks. Quick and convenient access to savings is critical for clients. Studies have shown great demand among women and youth in conictaffected settings for safe savings facilities, often as a priority over credit. Ensure Market Research Skills Micronance interventions must never be rushed and must always be preceded by market research. Concern Worldwide advises: Without a manager or advisor that has practical experience of conducting rigorous eld research, and who can guide the entire process, the market research results are likely to be of questionable reliability. Without reliable results, the ensuing micronance product(s) will be unlikely to succeed.63 Agencies wishing to implement micronance interventions must either have the capacity for market research or be prepared to seek out external support.64 Ensure the Intervention Is Context-specic Micronance programs that have worked well in one environment with a particular population may not work elsewhere. A participatory approach will assist in developing and monitoring micronance programs for contextual relevance and appropriateness, and will take into account clients past and current knowledge, skills and experience as nancial resource and risk managers. A contextually relevant micronance program is more likely to achieve local ownership and sustainability. Ensure a Participatory Approach for Programming Throughout assessments, design, implementation, monitoring and evaluation, micronance programs must ensure that all groups are both consulted and actively involved in decisionmaking. If it is difcult to elicit the perspectives
171
of women or youth, attract and retain them in leadership positions for group-based micronance activities or if it is challenging to achieve a gender balance in mixed groups, steps should be taken to build their individual capacities to participate fully. If women and girls are barred from committee or group membership by household or community members, measures should be taken to include their needs, priorities and strategic concerns in program activities. It may be necessary to target women separately in order to support their full participation and capacity to utilize micronance activities productively. However, female-targeted micronance programs must ensure that males also have access to parallel services. Excluding men from micronance services can escalate pressure on women to access loan money, lead to vicious cycles of indebtedness, exploitation and abuse, and cause increases in domestic and gender-based violence. Determine Whether Host Government Polices Are Supportive It may be unwise to attempt to launch a micronance intervention when host governments have strict policies against the participation of displaced groups in the market economy; deny them the right to work and/or freedom of movement; or tolerate police harassment of displaced people. Government restrictions on mobility or denial of access can create insurmountable obstacles to both displaced peoples economic activity and micronance interventions. It is also vital to understand laws and policies regulating micronance in the host country, as these may restrict operations or seriously impede the probability of success. (See Working with Host Governments chapter.)
Match Client Needs with the Appropriate Services Micronance services should provide a stepped ladder-of-opportunity approach that can respond dynamically to different needs during various phases of economic recovery and development. This requires sequenced, interlinked programs that start with food aid; stipends and in-kind or startup grants for income generation activities; safe savings facilities; insurance arrangements; informal group savings and credit associations; semiformal banking groups with access to mainstream nance; and progress toward individual loans from a trusted micronance institution or bank. Economic shocks or crises may force a client to return to an earlier stage in the sequence, such as from group-based credit to a savings-led or grant-based approach to livelihood support. However, crises should not result in the exclusion of women or youth from participation in progressive nancial services programs. In situations of protracted displacement, small economic development grants may stimulate market activity. Income generated from grant-stimulated livelihood activities may enable participation in savings schemes and lead to overall nancial skills building.
172
CASE STUDY Sierra Leonean IDP Family Given New Hope65
Ms. Rashid, a single mother of two in northern Sierra Leone, made a modest living gathering and selling rewood. Due to a rebel attack in 2000, she and her family ed and ended up in an IDP camp near the capital, Freetown. In the camp, Community Action for Progress selected Ms. Rashid to start a small kerosene business, and provided her with training and an initial grant. Following the hostilities, Ms. Rashid repatriated to her community, where she started a bread-baking business with a second grant. Though Ms. Rashid has not been able to replace her household assets, she is able to provide basic needs for her family, send her oldest child to school and save with a RoSCA. Ms. Rashid aspires to complete secondary school and begin training as a nurse.
Build Human Resource Capacities Gender-balanced, well-trained and sensitized staff are vital to the success of all micronance programming activities. Human resource strategies should include investment in both local recruitment and sustainable staff capacity building. In order to be effective, this requires organizational leadership and a clear commitment to both the economic and humanitarian missions of micronance. However, staff development should be undertaken in gradual steps as the MFI can afford it; if the training of staff takes precedence over building the MFIs clientele or portfolio and maintaining high repayment rates, it may exhaust donor funds in its critical rst few years. Take Precautions for Client and Program Staff Security When arranging meeting times, locations and activities, it is vital to consider the protection and personal security of clients and program staff, as well as the security of the funds being transferred. Ongoing situation analysis is required in conict-affected environments.
Establish Condential Grievance Procedures For client protection, clear and anonymous grievance reporting channels and remediation procedures must be in place to prevent and address cases of exploitation and abuse by any stakeholder. Reports of abuse must be promptly investigated and acted upon. Further information to protect micronance clients can be found in the CGAP Client Protection Principles in Micronance.66 Secure Sufcient Long-term Funding It is critical to secure longer-term funding before commencing the program, as undercapitalized programs or abrupt ends to funding can be disastrous for the success of otherand future micronance programs. Be sure to anticipate the likelihood of high startup costs and slow and insecure growth. Establish Monitoring Mechanisms Systems to monitor social and economic program impacts should be planned during the design of any micronance intervention. Assessment of demand for different micronance products and services should be ongoing. Shifts in demand are
173
certain to occur as the needs and aspirations of clients change, or in response to changes in the security environment and wider market economy. Plan for Adaptability and Reexivity among Staff and in Program Implementation A well-designed and participatory micronance program should examine its own organizational culture, policies, processes and stafng, and identify where these may be in conict with its objectives or capacity to be accountable and transparent to clients, the wider micronance, humanitarian and development communities, as well as to donors. Adjustments in program design, stafng and service delivery policies should be made on an as-needed basis in order to ensure that operations align with program objectives. Separate Relief Operations from Micronance Programs Aid-based relief programs should be run separately from savings, credit, insurance or cash transfer nancial services. An effective marketing strategy should clearly communicate the difference between humanitarian aid and micronance providers. Financial service providers and MFIs should maintain separate ofces and staff from aid programs, along with distinct logos, names, communications strategies and specialist staff. Build Relationships with Training and Support Service Providers In order for women and youth to use and benet from nancial services, multisectoral training and support programs are vital. In a study on IDP livelihoods in northern Uganda, it was found that there was a strong demand for training: (E) ven if loan programs are not possible, a business training program, which is more easily implemented, could make a strong contribution to displaced peoples ability to pursue microenterprise.67
Undertake a Do No Harm Analysis The Do No Harm methodology68 is premised on the belief that in a conict or recovery context, aid can never be neutral. A Do No Harm Connectors and Dividers analysis will assist program planners in charting the patterns of tensions (dividers) between different stakeholders and the factors (connectors) that bring them together.69 Ensure the Intervention Is Age-, Gender- and Ability-aware Well-designed micronance programs must take into account the multiple roles and responsibilities of displaced people at various stages of their life cycles. Analyzing the gendered patterning of responsibilities and their impacts on livelihoods and household economic activities in conictaffected communities is essential for planning appropriate micronance programs with women and youth. Cultural expectations for women and girls shape the relationship between their unpaid household work and paid or income generation labor differently. In conict-affected environments, women and girls household and caregiving responsibilities are compounded by new or heightened pressures to generate income. Micronance services that are coordinated with support programmingand include the participation of community leaderscan be vital to the livelihoods and well-being of women and youth. Such support services might include child and dependent care, education, vocational training, business development skills training, health and reproductive health care, legal support and psychosocial services. The capacity of clients to make use of program services will vary widely. Participation in a micronance program can challenge or reinforce existing social and economic inequalities through unintended consequences or positive outcomes. Simply targeting women or youth cannot guarantee that
174
they will enjoy increased decision-making power over nancial resources or address their social and economic marginalization. Additional steps must be taken to support their diverse capacities to access and utilize nancial services in ways that promote benecial and transformative outcomes. Identify Issues of Domestic and Gender-based Violence Planners must take steps to ensure micronance programs do not inadvertently expose women or youth to further vulnerability. Access to credit and income earnings can heighten a womans risk of violence; for example, when her husband, partner and male community members lack the same access and resources. Micronance programs must be aware of clients associated risks and implement measures to enhance female clients protection.
DESIGN
Once it has been determined that micronance is an ideal livelihood intervention, there are a number of guidelines that will assist practitioners in its development. Due to its complexity, a number of resources and tools are referenced that can provide a step-by-step design process. The SEEP Network has identied lessons for making micronance interventions work in both conict and post-conict environments:70 1. Focus on the Clients Security Assess clients strengths and assets. Ensure that clients selected for micronance services are economically active and will be able to repay their loans. See where savings products can enable the transfer of funds, provide long term stability and also offer a safe place for cash that will reduce the risk of vulnerability. 2. Work with Trusted Institutions Existing MFIs that already have the trust of displaced groups should be utilized. Efforts should be made to build upon rather than replace such institutions. 3. Provide a Range of Services It is critical to frame micronance services from a development perspective rather than that of relief. Sharing information and coordinating activities with relief and economic development projects can assist in articulating the strategy and tactics for moving families from receiving relief to cash grants to nancial services.71 4. Adjust Product Design and Delivery Micronance interventions must be adaptable to changing conditions and recognize the context.
175
5. Separate Micronance from Relief Operations While there may be necessary overlap between development and relief, separating the two is fundamental for program success. 6. Share, Cooperate and Collaborate with Stakeholders Stakeholder groups and networks within the local, NGO, MFI and donor communities have a great deal to gain by collaborating and sharing lessons learned and program goals. 7. Think Long Term a. The high costs of operating in a dangerous environment lengthen the time it takes to become protable. Donor assistance in conict and post-conict environments often operates with much larger sums of money and on a much shorter time frame than development assistance, with the potential for donor funding cycles to pressure practitioners to adopt unsustainable lending practices.72 b. It is crucial for practitioners and donors to work together to design funding mechanisms that permit continued institutional development of the micronance program after the emergency funding has expired.73 8. Develop Human Resources and Ensure Staff Safety It is critical to hire a strong director and other technical staff members who will remain with the project. It has been found that in emergency contexts, expatriate directors frequently have more success with donors and a greater ability to interact with the relief community, but they may not have access in complex security situations.74 In cases where expatriate staff members are hired, it is important to develop succession planning to prepare for replacement of a senior management team.
9. Ensure Access to Information and Systems Remote access to secured records is essential in the event of unforeseen circumstances and when staff cannot be in the ofce. 10. Maintain Portfolio Quality Monitoring repayment and developing collection efforts are essential to ensuring the nancial strength of MFIs and their services to displaced clients. The use of management information systems (MIS) that have timely and accurate information will enable credit ofcers and management to monitor repayment daily, and allows managers to hold credit ofcers responsible for their portfolio quality.75
KEY ELEMENTS OF MICROFINANCE PROGRAM DEVELOPMENT AND DESIGN

In addition to participatory market research and needs assessments, key elements in the design of micronance interventions include an assessment of nancial service needs and client capacities and risks.
SAVINGS
Individual or group-based savings arrangements should be stand-alone services and not be linked conditionally to credit, that is, loans should not be compulsory for savers. Savings security involves taking steps to enhance the personal security of deposit collectors and the security of MFI lock boxes and ofces. Savers should be able to invest in interest-bearing savings facilities that adhere to international regulatory standards in cases where no
176
national regulations exist to protect savings. Savings facilities with higher rates of interest earned on deposits help build loan capital, emergency funds and an asset base. However, many countries limit the type of institution that can collect and mobilize savings, so it is important to understand all relevant regulations before collecting savings. Quick and convenient access to savings has been shown to be highly valued and useful. In some cases, however, women or youth may prefer contractual, term savings, such as a certicate of deposit, to safeguard the money from being taken by spouses, relatives or in-laws, or being spent prematurely. All types of savings facilities should take measures to prevent other people from accessing the savings of women and youth.
Smaller and shorter-term loan sizes with more frequent and exible repayment plans following personal or community crises, or during an ongoing crisis, should be gradually increased. Starting off with small loans may encourage risk-averse women or young borrowers to begin borrowing and then gradually progress to larger loans over time with improvements in situational and income stability. Strategies for equal access and graduation to larger and longer-term individual loans must be clearly designed, communicated and implemented. For semiformal group lending arrangements working with an MFI or nancial NGO, good practices for preventing missed payments include: forging a close loan ofce-client relationship; forbidding business partnerships between group members; and discouraging household members from participating in the same group. Subsidies or ceilings on interest rates are generally not recommended as they may undermine sustainability. Loan repayment schedules need to be aligned to clients individual circumstances and business cycles. Grace periods for certain types of seasonal enterprises, or loan rescheduling for childbirth, serious illness or any type of crisis that hinders loan repayment, should be incorporated into micronance product design. The interest, fees and terms of all nancial products must be explained to clients in a manner that is transparent and understandable. Micronance to support mens positive role in economic recovery and reduce gender inequalities may include nancial services to promote and reinforce male responsibilities to contribute to household well-being, such as loans for girls
CREDIT CONSIDERATIONS
The following are important considerations when designing a micronance intervention: Lending is complicated by the inationary environments common to conict and recovery contexts. Loans may need to be denominated in a stable foreign currency, but MFIs should be aware of the risk this places on borrowers. Loan applications should be straightforward and take into account applicants levels of literacy and numeracy. Assistance must be provided when required. Loan eligibility criteria should not exclude women or youth on the basis of rst-time or home-based enterprises. Health issues or disabilities should not automatically disqualify people from receiving loans. Vulnerable groups should be considered on an equal basis with all others. Guarantors or the endorsement of anyone other than the loan applicant should not be requested or required.
177
education or for purchasing productive assets for unmarried daughters. Such loans should be accompanied by sensitization training so that men and community leaders understand the benets of and can prepare for more educated, vocal and economically productive girls and women in their communities.
ness, peer dynamics and guarantee mechanisms. Ultimately, it may lead to increased attrition rates as less-able members are rejected from groups.76 Both those affected by and those who have contracted HIV/AIDS should benet from livelihoods support, training and strategic participation in nancial services programs. Group members may be able to help one another. There are several special considerations applicable to the design and implementation of group-based savings and credit interventions with HIV/AIDS-affected clients: Loan funds should be set up separately from any main loan fund used by other micronance program target groups. Short-term market activities that quickly generate income and short loan repayment periods are recommended. Targeting the primary caregivers of HIV/ AIDS-affected people rather than those who are seriously ill with HIV/AIDS can increase program effectiveness. Steps should be taken to reduce and eliminate discrimination by eld staff against clients and to provide them with sensitivity training.
PARTICIPATORY VALUE CHAIN ANALYSIS

As part of a participatory multistakeholder assessment process, participatory value chain analysis (PVCA) can be used as a tool for mapping value chains in local products and linking women and youth-led microenterprise activities with wider markets; and for identifying where micronance services may support livelihood activities that strategically tap into established or growing value chains. Conducting a PVCA is important for planning interventions that seek to strategically leverage micronance services to stimulate and develop microenterprises. (See the Enterprise Development chapter for more information about the use of value chain analysis.)
MICROFINANCE AND HIV/AIDS PROGRAMS FOR DISPLACED WOMEN AND YOUTH

Refugees, IDPs and returnees may be affected by HIV/AIDS or AIDS-related care responsibilities. The epidemic is having serious impacts on micronance programs. When members of a group develop fullblown AIDS, a groups burden of debt often becomes too much for nonaffected group members to handle. This affects their ability to repay and group morale, and may lead to breakdown in group cohesive-
178
CASE STUDY Micronance Empowers South African Women to Reduce AIDS Risks
77
Are established benchmarks, goals and time lines being adhered to? If not, why not? Should the obstacles have been foreseen and planned for or were they unavoidable? What objectives were set for program participants?
Poor women in rural areas of South Africas Limpopo Province were offered small loans to start businesses such as buying and selling produce, selling used or new clothes, providing child care services or running food stalls.78 A condition of obtaining loans was attendance at 10 one-hour sessions, which focused on topics such as HIV/AIDS, sexual violence, gender inequality and communication skills. Two years after the intervention began, research found that the women had an increase in household asset value and savings rates, and there was a reduction in unprotected sex and intimate partner violence.
Who in the community is beneting from the program, and who is excluded? Was the participant selection process effective and fair? Are clients repaying their loans? If they are not, what are the reasons: other demands on their time, frustration with low payment levels, lack of transportation? Are clients using business development services and micronance products such as savings and microinsurance? Are these products aiding their success? Are clients paying debts, saving or investing? Does the community perceive the intervention to have long term benets? What is the impact of income generation on gender and household relations? Is there increased violence? Are women seeing an increase in status and respect?
IMPLEMENTATION
ONGOING MONITORING
Before beginning a micronance intervention, it is important to formulate a time line and collect baseline information to allow comparison with results from subsequent surveys. Determining community needs and assets can be identied with market assessments referenced at the end of this chapter. Questions to consider include:
Are there any security problems that are resulting in vulnerability? Are clients satised with the access and security of micronance services? Is the micronance program equipped to carry on services with local ownership once the agency transitions out?
179
CASE STUDY Kenyan Micronance Intervention Benets from Ongoing Monitoring79
The Tap and Reposition Youth (TRY) initiative, launched by the Population Council80a U.S. NGO focusing on reproductive health issuesand K-Rep Development Agency81 (KDA)Kenyas oldest micronance institutionwas designed as a minimalist micronance intervention for young women and adolescent girls in low-income and slum areas of Nairobi affected by high HIV infection rates. The project aimed to reduce their vulnerabilities to adverse social and reproductive health outcomes, including HIV infection, by improving their livelihoods options.82 Originally, the main objective of the project was to facilitate group formation for credit lending. However, adjustments to the project design had to be made following high participant drop-out rates due to a reported lack of interest in continuing to receive loans, and heavy restrictions on accessing individually accumulated savings. Girls who dropped out indicated that they valued the social support provided by mentors and the friendships developed through group meetings. TRY project managers subsequently redesigned the program to respond to different participants capabilities, capacities and nancial and nonnancial education and support needs. Therefore, an initial focus on group formation for credit-lending subsequently developed into a graduated or staged integrated program model involving savings, credit, nonnancial education and social support. The staged approach was developed to match youth participants needs with their capabilities and capacities for economic participation at different stages of their development. They found that in general, younger, less experienced and more vulnerable girls valued social support and safe, convenient and voluntary savings facilities most highly, while older, more experienced and less vulnerable girls were ready for credit, entrepreneurship and repeating loan cycles. The importance of mentorship in youth program participant retention rates was highlighted by evaluations, which found that young clients needed social support mentors who did not have the competing roles of credit ofcers or deposit collectors.
Program monitoring may uncover unintended negative consequences. The kind of unintended impacts to check for include: an increase in gender-based violence due to role reversals in income generation, or conicts over spending or household chores; increased stress on female clients due to new enterprises in addition to child care, cooking, cleaning and other household responsibilities; unrest within the community due to discrepancies between individuals who successfully access loans and those not chosen or accepted.
180
The Seven Most Common Mistakes in the Provision of Microcredit
From experience in many countries, CHF International83 has identied seven commonly recurring mistakes in proving microcredit in post-disaster, conict or post-conict environments: 1. Providing credit to households who have tremendous need but no capacity to pay: the neediest grants and credit should only be given to the creditworthy.84 2. Combining grant programs with loan programs.85 3. Donors failing to respect micronance best practice principles: they often pressure local NGOs/MFIs to approve loans for all program beneciaries without regard to their capacity to repay the loans.86 4. Programs do not charge market interest rates: they thus distort the local credit market and do not allow for proper cost recovery.87 5. Program funds are narrowly targeted: When only one client group receives loan funds, loan promoters must spend time and resources verifying the clients status. Potential credit recipients can go to great lengths to falsify documents in order to qualify under a select client group.88 6. Donor micronance interventions compete with local MFIs rather than supporting them.89 7. Donors names appear prominently in the micronance institution, leading clients to neglect repayment because the money is coming from a well-funded donor agency.90
ADJUSTING THE PROJECT

In the event of resurgent conict or instability, practitioners should ensure that micronance products or new income are not placing clients or other community members at risk. To the extent possible, loan ofcers should attempt to verify the use of loan funds for livelihood activities rather than pure consumption.

Most micronance programs eventually plan to scale down, close out operations or transition to wholly local ownership and stafng as international staff and funding leave the affected area. From the very beginning of the program, an exit strategy should be developed in order to provide necessary support to clients during the
181
transition. Once the implementation and progress of the micronance intervention have been assessed, an exit strategy should be fully developed. For grassroots community-owned nancial systems, such as RoSCAs, ASCAs or VSLAs, this may mean simply that the implementing organization would phase out its facilitator role as the community begins to manage the program independently and sustainably. Exit strategy activities might include: supporting grassroots nancial associations through the transition from displacement to return, where group cohesion appears likely to endure; linking clients on a group or individual basis with a local semiformal or formal MFI; helping clients establish client relationships with grassroots nancial associations, MFIs or banks in the locations of return; exploring the scope for setting up new informal nancial associations, a semiformal or formal MFI in the locations of return. NGOs preparing an exit or transition strategy have a variety of options and need to focus on ensuring continuity of service to their clients. Options include: Portfolio and client handover to another existing micronance institution; Becoming a locally registered micronance institution that is no longer afliated with the NGO, and putting the staff, governing board, and procedures in place to ensure its long term stability and viability; or Slowly winding down the operation and ensuring that clients are referred to other nancial institutions. Each of these options requires careful, long term planning so that the credibility of the institution and that of other micronance institutions in the region are not undermined.
EVALUATION
Evaluation of micronance interventions must go beyond loan portfolio size and default and repayment rates, and include the impact on household well-being by including impact indicators, such as increased income, improvements in childrens nutritional status and school attendance and womens role in decision-making. Evaluating micronance program outcomes provides important learning opportunities for the implementing organization, clients and the wider micronance community serving conict and disaster-affected populations. Micronance programs in humanitarian settings should be evaluated not for nancial performance alone, but for their social performance with respect to the rights and livelihoods of displaced people. When it comes to evaluating micronance interventions, claims regarding impact are rarely backed by rigorous data. Such claims typically depend on information from agencies own monitoring and evaluationsystems and anecdotes from project monitoring reports.91 Such nonparticipatory exercises rarely show the real impact of a project on the lives of clients. A checklist of issues to determine the impact of micronance interventions for conict-affected women and youth should involve asking whether:92 refugee and IDP women and youth have had equal access to micronance services; participation has led to increased income and/or secured savings; gender-sensitive training and support services have been provided to enable women and youth to help overcome inequalities;
182
the intervention has improved access to basic services such as health, education, nutrition, water and sanitation; women or youth clients have increased intrahousehold decision-making power or control over new income as a result of participation in the intervention; a greater amount of household income has been allocated to women and girls nutrition, education, health, well-being and productive resources; micronance has improved perceptions of womens role in society; micronance services have better prepared refugee or internally displaced women or youth for sustainable repatriation or return. When reviewing the success of program objectives, it is important to: assess the extent to which aspirations of the program and clients have been met; assess the extent to which the most vulnerable and impoverished groups have been able to access and utilize appropriate nancial services; identify alternative nancial services clients have used while engaged in the program; identify immediate impacts; identify unanticipated outcomes and their likely long term consequences; identify why clients dropped out: it is essential that they be interviewed as rigorously as successful clients; use age-, gender- and diversity-disaggregated data to identify and analyze how the intervention has affected the relationships, resources and risks of women, girls, boys and men differently. Micronance impact assessment interviews should try to engage program clients individually. A single dominant household member must never
be allowed to speak on behalf of others. Female program clients may not want their partners, in-laws or household members to know about their nancial resources, decisions and future plans. It is important to ensure that monitoring and evaluation (M&E) ndings are shared with other agencies working in the vicinity and with the wider micronance, economic recovery and development communities. Forums for the exchange of M&E expertise are provided by the Active Learning Network for Accountability and Performance in Humanitarian Action (ALNAP),93 the Consultative Group to Assist the Poor (CGAP),94 the SEEP Network95 and microLINKS,96 developed by USAID.
183

Allen, Hugh. Village Savings and Loan Associations (VSLAs) Programme Guide Field Operations Manual Version 3.1. VSL Associates, November 2007. www. vsla.net. American Refugee Committee. The Stepped Approach for Improving Livelihoods (SAIL): An Implementation Manual for Refugee Camp & PostConict Environment Programs. First Edition. www. arcrelief.org/site/DocServer/IGP_Manual_Proof_3. pdf?docID=321. ILO. Introduction to Micronance in ConictAffected Communities: A Training Manual. 2002. Description at: www.microlinks.org/ev_ en.php?ID=20738_201&ID2=DO_TOPIC. ILO-UNHCR. Microenterprise Development and Economic Recovery Workshop. Presentation, 2007. www.microlinks.org/ev_ en.php?ID=20958_201&ID2=DO_TOPIC. Jacobsen, Karen. Micronance in Protracted Refugee Situations: Lessons from the Alchemy Project. Feinstein International Center, Tufts University, 2005. nutrition.tufts.edu/docs/pdf/famine/MF_Lessons. pdf. Johnson, Susan. Gender Impact Assessment in Micronance and Microenterprise: Why and How. Development in Practice, vol. 10, no. 1 (February 2000). www.mte.gov.br/pnmpo/poverity/PAPdocs/ Papers%20per%20CD/GenderImpactassessmentDIPSusan.pdf. Miamidian, Eileen et al. Surviving Disasters and Supporting Recovery: A Guidebook for Micronance
Institutions. World Bank Disaster Risk Management Working Paper Series No. 10, February 2005. www. yearofmicrocredit.org/docs/Disasterguidenal.pdf. Micronance Gateway. Micronance in Conictaffected Environments: What Works? micronancegateway.org/content/article/ detail/20028. Nussbaum, Melissa and Alexandra Miehlbradt. How to Use Market Assessment Information to Design and Implement a BDS Market Development Program. The SEEP Network Discussion Synthesis No. 3, September 2005. www.bdsknowledge.org/dyn/bds/docs/456/ Discussion%20Synthesis%203%20nal.pdf. SEEP Network. Minimum Standards for Economic Recovery After Crisis. Draft, January 2009. www.microlinks.org/ev.php?ID=33368_201&ID2 =DO_TOPIC. Simanowitz, Anton. From Event to Process: Current Trends in Micronance Impact Assessment. Small Enterprise Development, vol. 12, no. 4, December 2001. www.micronancegateway.org/content/article/ detail/19316. United Nations Capital Development Fund. Building Inclusive Financial Sectors for Development. May 2006. www.uncdf.org/english/micronance/ pubs/bluebook/pub/index.php?get_page=contents. USAID. Microenterprise Best Practices Project. Environmental Preconditions for Successful Postconict Micronance. MBP Micronance Following Conict, Brief No. 4, 2004. www.micronancegateway.org/redirect.php?mode=link&id=14557.
184
Wilson, Tamsin, Straton Habyalimana and Isabelle Kidney. Market Research for Micronance in War-affected Areas: Tools for Market Research & Product Concept Development. Concern Worldwide, January 2004. micronancegateway.org/ les/20007_Post_20Coict_20MF_20Market_20R esearch_20Tools.pdf.
VSL Associates. www.vsla.net. Women Advancing Micronance (WAM International). www.wam-international.org.
ASSESSMENT TOOLS97
CGAP and World Bank. Micronance Poverty Assessment Tool. Technical Tools Series No. 5, September 2003. www.cgap.org/p/site/c/template. rc/1.9.3004. de Luca, Loretta. Business and Decent Work in Conict Zones: A Why? and How? Guide. ILO, 2003. www.microlinks.org/ev_ en.php?ID=20718_201&ID2=DO_TOPIC. DFID. Conducting Conict Assessments: Guidance Notes. January 2002. www.dd.gov.uk/pubs/les/ conictassessmentguidance.pdf. ILO. Crisis Response: Rapid Needs Assessment Manual. 2002. www.ilo.org/global/What_we_do/ Publications/ILOBookstore/Orderonline/Books/ lang--en/docName--WCMS_PUBL_9221126390_ EN/index.htm. International Alert. Conict-sensitive Approaches to Development, Humanitarian Assistance, and Peace building. 2004. www.conictsensitivity.org/ resource_pack.html. . Conict-sensitive Business Practice: Guidance for Extractive Industries. March 2005. www.iisd.org/ pdf/2005/security_conict_sensitive_business.pdf. IRC, Oxfam et al. Emergency Market Mapping and Analysis (EMMA). 2009 (forthcoming). Save the Children, RHVP and FEG Consulting.
KEY WEBSITES
ACCION International. www.accion.org. Consultative Group to Assist the Poor (CGAP). www.cgap.org. Donor Committee for Enterprise Development. www.enterprise-development.org. Financial Services Impact Project. www.fsassessment.umd.edu. Foundation for International Community Assistance (FINCA). www.villagebanking.org. Micronance Gateway. www.micronancegateway.org. Micronance Network. www.mfnetwork.org. MicroSave. www.microsave.org/toolkits.asp?ID=14. MIX Market. www.mixmarket.org. Small Enterprise Education and Promotion (SEEP) Network. www.seepnetwork.org. Sustainable Micronance for Womens Empowerment. www.gennance.info.
185
Practitioners Guide to the Household Economy Approach. February 2008. www.feg-consulting. com/resource/practitioners-guide-to-hea/0%20 Cover%20pages%20and%20Introduction.pdf. UN Global Compact. Global Compact Business Guide for Conict Impact Assessment and Risk Management. June 2002. www.unglobalcompact. org/docs/issues_doc/7.2.3/BusinessGuide.pdf. USAID. Conducting a Conict Assessment: A Framework for Strategy and Program Development. April 2005. rmportal.net/tools/conict-assessmentand-management-tools/higherlevel_conictassmt/ view. Sardesai, Shonali and Per Wam. The Conict Analysis Framework: Identifying Conict-related Obstacles to Development. World Bank Conict Prevention and Reconstruction Unit, Dissemination Note no. 5. 2002. www.conictsensitivity.org/node/114.
1.1, in Protecting the Poor, Craig Churchill, ed., ILO and Munich Re (November 2006) p. 12, www.munichrefoundation.org/StiftungsWebsite/Projects/Microinsurance/ 2006Microinsurance/Microinsurance_Compendium.htm. 6 Micronance Gateway, Glossary, www.micronancegateway.org/resource_centers/ savings/glossary. ACCION International, Glossary of Micronance Related Terms, www.accion.org/Page.aspx?pid=257. See Stuart Rutherford, Grameen II at the End of 2003: A Grounded View of How Grameens New Initiative Is Progressing in the Villages, MicroSave (January and April 2004): p. 7. www.safesave.org/GRAMEEN%2011%20 Status%20report%20Final%2019%20Apr%202004.pdf. Allianz, Micronance: Traditional FinanceDo You Susu? knowledge.allianz.com/en/globalissues/ micronance/traditional_nance/history_moneypool_ susu.print.html. VSL Associates, www.vsla.net. See Care USA, CARE Village Savings & Loan Programs: Micronance for the Poor that Works (2005): p. 4, www.seepnetwork.org/les/3358_le_Th8c._VS_L_ Presentation_Lauren_SEEP_formatted.PPT. Ibid. Ibid. CARE International in Uganda, Village Savings and Loans Association (VS&LA) Workshop Report (April 2006): p. 8, edu.care.org/Documents/CARE%20 Int%27l%20in%20Uganda%20Village%20Savings%20 and%20Loans%20Association%20Workshop%20Report. doc. Ibid. American Refugee Committee, The Stepped Approach for Improving Livelihoods (SAIL): An Implementation Manual for Refugee Camp & Post-Conict Environment Programs, First Edition, www.arcrelief.org/site/ PageServer?pagename=programs_micro_enterprise. CGAP. Poor Peoples Savings: Q&As with Expert A Compilation of 15 Expert Views on Savings Demand, Products, Delivery Models, and Policy Issues. p. 11, www.micronancegateway.org/resource_centers/savings. Ibid. CGAP, Safe and Accessible: Bringing Poor Savers into the Formal Financial System, CGAP Focus Note No. 37 (September 2006): p. 3, www.micronancegateway.com/ content/article/detail/36533. Marguerite Robinson, Q&A with Marguerite Robinson, The Micronance Gateway, Ask the Experts, www. micronancegateway.org/resource_centers/savings/ experts/_asktheexpertsno2.
7 8
10 11
12 13 14
NOTES
1 ILO, Livelihood and Employment Creation: Business Development services, ILOs recommended management and policy options for employment friendly reconstruction in Sri Lanka (2005): p. 6, www-ilo-mirror.cornell.edu/ public/english/region/asro/colombo/12businessdevelopme ntservicesA.htm. Grameen Bank, www.grameen-info.org/index. php?option=com_content&task=view&id=32&Itemid=91. FINCA International, www.villagebanking.org/site/ c.erKPI2PCIoE/b.2394157/#micronance. Lisa Pacholek, Micronanced in Colombia: An Appropriate Tool for Raising the Economic Standing of Internally Displaced Persons? International Development Matters, CHF International (November 2006), www. chnternational.org/les/4413_le_LACEA_FINAL_ Complete_small_size.pdf. Craig Churchill, What Is Insurance for the Poor? Part
15 16
17
2 3 4
18 19
20
186
21
Pamela Young, Microinsurance Exploring Ways to Assess Its Impact, Micronance Opportunities and the Iris Center (University of Maryland, June 2006), www.fsassessment. umd.edu/Microinsurance.pdf. Patricia Lee Devaney, Microsavings Programs: Assessing Demand and Impact, A Critical Review of the Literature, (The Iris Center, University of Maryland, June 2006), p. 25, www.fsassessment.umd.edu/Microsavings.pdf. See Micronance Gateway, Micronance in ConictAffected Environments: What Works? www.micronancegateway.org/content/article/ detail/20028. Ibid. Ibid. Ibid. Research carried out by USAID on economic recovery in conict-affected countries and presented by USAID consultant Mayada El-Zoghbi at a webinar on October 23, 2008. The Uganda Womens Effort to Save Orphans (UWESO), www.uweso.org/modules/pagewrap. Jane Kembabazi and Huria Ogbamichael, UWESO Internally Displaced Persons Income Generating and Capacity Building Project, AP Country Report No. 3 (August 2004): p. 4, nutrition.tufts.edu/docs/pdf/famine/ alchemy/2004_3_uganda.pdf. Karen Jacobsen, Akua Ofori-Adjei and Jane Kembabazi, Using Microenterprise Interventions to Support the Livelihoods of Forcibly Displaced People: The Impact of a Microcredit Programme in IDP Camps in Lira, Northern Uganda, Refugee Survey Quarterly, vol. 25, no. 2 (2006). Microcapital, MICROCAPITAL STORY: Barclays to Donate $20M to Expand Its Micronance Pilot Program in Uganda in Collaboration with CARE International and UWESO (October 7, 2008), www.microcapital.org/ microcapital-story-barclays-to-donate-usd-20-millionto-expand-its-micronance-pilot-program-in-uganda-incollaboration-with-care-international-and-uweso. Jason Phillips, Challenges to the Effective Implementation of Micronance Programmes in Refugee Settings, Forced Migration Review, Issue 20 (2004): pp. 5-8, www. fmreview.org/FMRpdfs/FMR20/FMR2002.pdf. Tamsin Wilson, Straton Habyalimana and Isabelle Kidney, Market Research for Micronance in War-affected Areas: Tools for Market Research & Product Concept Development, Concern Worldwide (January 2004), micronancegateway.org/les/20007_Post_20Coict_20 MF_20Market_20Research_20Tools.pdf.
www.micronancegateway.org/les/20006_HUmanitarian _20Exchange_20July_202003.pdf. 35 Questions derived from SIDA, Manual for Conict Analysis, SIDA Division for Peace and Security through Development Cooperation, Methods Document (January 2006): p. 29, www.sida.se/shared/jsp/download. jsp?f=SIDA4334en_Web.pdf&a=3351. 36 Concepts in this section are largely derived from Linda Mayoux, Womens Empowerment through Sustainable Micronance: Rethinking Best Practice (September 2005), www.micronancegateway.org/content/article/ detail/32112. 37 Ibid., p. 2. 38 Ibid., p. 2. 39 Ibid., p. 8. 40 Ibid., p. 10. 41 Ibid., p. 12. 42 Ibid., p. 12. 43 Ibid., p. 12. 44 Karen Jacobsen, Micronance in Protracted Refugee Situations: Lessons from the Alchemy Project, (Feinstein International Center, Tufts University, 2005), p. 14, nutrition. tufts.edu/docs/pdf/famine/MF_Lessons.pdf. 45 Womankind Worldwide, www.womankind.org.uk. 46 Helen Pankhurst, Passing the Buck? Money Literacy and Alternatives to Credit and Savings Schemes, Gender and Development, vol. 10, no. 3 (November 2002): p. 11. 47 Ibid., p. 12. 48 Ibid. 49 Ibid. 50 Ibid. 51 Ibid., pp. 12-13. 52 See note 24. 53 Tim Morris, personal testimony. 54 SEEP, Conict and Post-Conict Environments: Ten Short Lessons to Make Micronance Work, SEEP Network Progress Note no. 5 (September 2004): p. 1, www.seepnetwork.org/les/2059_PN_5FINAL.pdf. 55 Ibid. 56 Ibid. 57 USAID, Microenterprise Best Practices Project, Searching for Differences: Following Conict vs. Other Environments, Brief No. 5 (2004), www.gdrc.org/icm/disasters/ Following_Conict_Brief_5f.pdf. 58 Ibid, pp. 2-3
22
23
24 25 26 27
28 29
30
31
32
33
34 Tamsin Wilson, Micronance in War-affected Countries: Challenging the Myths, Overseas Development Institute, Humanitarian Notes, no. 24 (July 2003),
187
59
Thomas Dichter, Hype and Hope: The Worrisome State of the Microcredit Movement, www.micronancegateway.org/content/article/ detail/31747. See SEEP, Economic Recovery Standards, communities. seepnetwork.org/econrecovery/node/821. See note 4, pp. 26-27. Karen Jacobsen, The Alchemy Project: Final Report (November 2004): p. 22, reliefweb.int/rw/lib.nsf/ db900sid/AMMF-6RVBW7/$le/tuft-gen-nov04. pdf?openelement. See note 32, p. 1. Ibid. Marinke van Riet, Of Refugees, IDPs and Returnees: The Trickle-Up Experience (UNHCR, Evaluation and Policy Analysis Unit Background Document, 2003), www.unhcr. org/research/RESEARCH/3fc483ab4.pdf. CGAP, Client Protection Principles in Micronance, www. cgap.org/p/site/c/template.rc/1.26.4943/. Karen Jacobsen, Akua Ofori-Adjei and Jane Kembabazi, Using Microenterprise Interventions to Support the Livelihoods of Forcibly Displaced People: The Impact of a Microcredit Programme in IDP Camps in Lira, Northern Uganda, Refugee Survey Quarterly, 25:2 (2006): pp. 23-39, 37. Collaborative Learning Projects, The Do No Harm Handbook (The Framework for Analyzing the Impact of Assistance on Conict) (November 2004), www.cdainc. com/dnh/docs/DoNoHarmHandbook.pdf. Ibid. See note 56, pp. 2-5. Ibid., p. 2. Ibid., p. 4. Ibid. Ibid. Ibid., p. 5. Pauline Achola, Impact of HIV/AIDS on Micronance: With a Case Study on HIV/AIDS Mitigation (Mennonite Economic Development Associates, July 2006) p. 12, www.microcreditsummit.org/papers/Workshops/16_ Achola.pdf. Keith Alcom, Micronance Project Reduces HIV Risk in South African Women, Gold Standard Trial Shows, aidsmap (August 4, 2008), www.aidsmap.com/en/news/ C561AE87-0EFE-4873-811A-21E05A714AF8.asp Ibid.
79
60 61 62
Annabel Erulkar et al., Tap and Reposition Youth (TRY): Providing Social Support, Savings, and Microcredit Opportunities for Young Women in Areas with High HIV Prevalence (Population Council, 2006), www.popcouncil.org/pdfs/ seeds/seeds23.pdf. Population Council, www.popcouncil.org. K-Rep Development Agency, www.k-rep.org/devagency. asp. See note 76, p. 1. See note 4, pp. 40-47. Ibid., p. 40. Ibid., p. 42. Ibid. Ibid., p. 43. Ibid., p. 45. Ibid., p. 46. Ibid., p. 47. Andrew Catley et al., Participatory Impact Assessment: A Guide for Practitioners (Feinstein International Center, Tufts University, October 2008): p. 7, https://wikis.uit.tufts.edu/conuence/ display/FIC/Participatory+Impact+Assessment-+a+Guide+for+Practitioners Primarily derived from Linda Mayoux, Sustainable Micronance for Womens Empowerment Strategy Checklists (2006), www.gennance.info (accessed February 2009). Active Learning Network for Accountability and Performance in Humanitarian Action (ALNAP), www.alnap.org. Consultative Group to Assist the Poor (CGAP), www.cgap.org. SEEP Network, www.seepnetwork.org. USAID, microLINKS, www.microlinks.org. Assessment Tools drawn from: SEEP Network, Appendix 1: Bibliography of Assessment Tools, in Economic Recovery Standards, communities.seepnetwork.org/econrecovery/node/1163.
80 81 82 83 84 85 86 87 88 89 90 91
63 64 65
66 67
68
92
93 94 95 96 97
69 70 71 72 73 74 75 76
77
78
188
189
Enterprise Development
INTRODUCTION
This chapter addresses enterprise development interventions, which have an important role to play both for displaced populations and in the economic recovery of conict- and natural disaster-affected settings. Enterprise development is focused on strengthening both the existing and growing private sector in order to enhance local economic development and expand job creation. Programming is meant to lay the foundation for displaced people to develop their business skills and rebuild their income sources through strong, vibrant enterprises linked to markets. The objectives of enterprise development interventions include assessing current enterprises; identifying where existing businesses on the micro-, meso- and macro-level can be strengthened; identifying areas for new development; and assessing how to foster new market growth. Not only does enterprise development help to build economic recovery and promote peace building in post-conict environments, it also develops the capacity of displaced people to build their assets and gain self-reliance that will reduce their vulnerability during their displacement and in their transition to a durable solution.
190
ENTERPRISE DEVELOPMENT
With support, which might include improvements in infrastructure, refugees are able to expand their markets and increase their income. Womens Refugee Commission/Dale Buscher
KEY LEARNING POINTS

Market assessments, market research and a value chain analysis must be conducted to ensure that enterprise development interventions are aligned with demand and contextand understand potential returns and risksto ensure the growth and viability of enterprises. Entrepreneurial participants must be supported with linkages to viable markets. Enterprise development interventions can be strengthened when support services are provided and complementary programs build the capacity of participants. Programs should reect long term labor market needs and be designed for long term sustainability. Participants should be developing skills that will be in continued demand in their community or in places of return. The protection of program participants and environmental impacts must be of paramount importance. Proper sensitivity must be given to gender, age and ability when selecting and working with participants.
191
ESSENTIAL ELEMENTS
DEFINITIONS
Business development services (BDS) are provisions for participants of enterprise development and micronance programs to increase their potential for success in their business endeavors. Services are considered nonnancial, and can include training, technical and marketing assistance, business information and linkages, infrastructure development, access to technology, advocacy, advice and mentoring.1 Enterprise development is used here to describe the development of business enterprises on the micro-, meso- and/or macro-level to create livelihoods for displaced people, to foster the growth of the private sector, and contribute to economic recovery following conict or crisis. In-kind grants are noncash grants used in the process of business development. These grants may include production inputs and/or tools to assist in the development of new and existing enterprises. Market development is a sub-eld of enterprise and private sector development, whereby development programs help link small enterprises with existing and potential markets.2 These include input and support marketswhich provide the necessary resources and enable production along the value chainas well as nal markets, where the end product can be sold. Market development programming aims to stimulate sustainable economic growth that reduces povertyprimarily by ensuring that small enterprise owners and their employees take part in the growth and reap high rewards.3 Microenterprise development is dened by the American Refugee Committee (ARC) as programs whose objectives include both the development of protable microenterprises for clients and the sustainable provision of services that help microenterprises (credit, training, etc.). These programs tend to be longer term and are employed in more stable environments.4
192
Relief substitution is a form of enterprise development. In this intervention method, community members produce products that are required in humanitarian relief efforts, such as soap, clothing and agricultural tools.5 The market for these products is often driven by the demands of relief agencies operating in the region. (See the Building In-Camp Economies chapter for more information about relief substitution.) Small and medium enterprises (SMEs) are small- and medium-sized businesses. In the development context, small businesses may have up to 20 employees, and medium businesses may have up to 50 employees. Assuming a nondevelopment context, the European Commission denes small enterprises as those with fewer than 50 employees, and medium enterprises as those with fewer than 250 employees.6 By contrast, the US Small Business Administration denes a small business as one with fewer than 500 employees.7 The Organisation for Economic Co-operation and Development (OECD) denes microenterprises as having up to ten employees.8 Value chains encompass the full range of activities and services required to bring a product or service from its conception to sale in its nal marketswhether local, national, regional or global.9 Value chain analysis (VCA) is a business management tool used to assess how products gain value as they pass through all the range of activities necessary to bring a product to market.
ESSENTIAL ELEMENTS OF ENTERPRISE DEVELOPMENT PROGRAMS

In order to be successful, enterprise development interventions for displaced people must include these essential elements: Market-Based Interventions Successful enterprise development interventions need to be based on a market assessment, which determines sectors potential for growth, employment or market demand.
Market Linkages Practitioners must provide links for microentrepreneurs to connect with actors on the value chain and in the wider markets. Developing the business skills and enabling enterprise development of participants need to be supplemented with these linkages to increase the likelihood of economic viability. Value Chain Analysis It is essential to conduct a value chain analysis to assess how to add value to products and strengthen linkages with markets, with the intent of upgrading and eventually integrating enterprises into larger value chains. Mapping out the
193
value chain will enable practitioners to understand how they can support participants and enable these linkages. Support Services Agencies should provide participants with access to support services, such as employment readinessliteracy, numeracy and basic nancial educationand business development services, such as technical assistance, advice or mentoring, to build the capacity of participants. Holistic Programming Enterprise development services will be most effective when they are part of a more comprehensive program. Markets are susceptible to a range of livelihood shocks, including conict, violence, natural disasters, and the displacement or repatriation of populations. Enterprises that are currently viable today may be obsolete or face market saturation in the future. Considering complementary programssuch as food aid to reduce vulnerability, or apprenticeship programs that will develop participants transferable skill setsis an important piece of enterprise development to strengthen the capacity of business owners and operators to transition quickly and smoothly to market changes. Gender-based Considerations Female participants may face additional barriers to creating sustainable businesses. The social division of labor between men and women creates fewer opportunities for women in business networking, accessing credit and education, and building assets, particularly in cultures that have restrictive customs. In addition, women often combine businesses with their responsibilities at home, including child care and household duties, which creates a heavy burden. As a result, female participants may be more inclined to perform low-risk activities with
guaranteed incomes rather than assume higherrisk endeavors with potentially higher prots.10 It is essential to include women and examine possible intervention consequences through a gender lens. Vulnerable Groups Vulnerable groups must have opportunities to participate in enterprise development interventions. Vulnerable groups might include women, youth and young household heads, older people, people with disabilities and/or living with infectious diseases, ex-combatants and members of particular ethnic or social groups who may have barriers to economic opportunities. Exit Strategy Exit strategies should be planned well in advance of withdrawal, which will enable practitioners to focus on promoting solutions that will continue when the program concludes and, more importantly, will ensure the ongoing resiliency of small enterprises to grow and to thrive as the market continues to evolve.11 The decision to end program support should be based on clear benchmarks developed at the beginning of the intervention.
ENABLING ENVIRONMENT FOR ENTERPRISES

Enterprise development services are most effective within the following enabling environments: Access to Markets Market access is one of the most fundamental aspects of enterprise development. It is essential to gauge market access and identify the placement in the value chain of targeted enterprises. This can include access to local, regional
194
or international markets, as well as markets inside refugee and internally displaced person (IDP) camps and settlements. However, in highly restricted markets, there are still opportunities for enterprise development. Access to Credit and Financial Services It is preferable that businesses have access to credit to purchase necessary equipment or to expand their businesses, but in-kind grants can be a substitute if microcredit or other nancial services are not available. Relative Security and Stability In order to function effectively, businesses need a secure environment without being constantly subject to conict and instability. Conduct a conict analysis to determine how conict has affected the market and how it could potentially affect interventions. Requisite Infrastructure Functioning infrastructure is helpfulbut not essentialin easing the ow of goods. In order to determine this, programmers can conduct an assessment of current infrastructure and its effect on market access as well as on an enterprise development intervention. Economic Activity For existing enterprises, there must be a steady ow of economic activity that provides them with access to producers, sellers, buyers, manufacturers, traders and other market actors along the value chain.
ECONOMIC RECOVERY
Enterprise development and building the capacity of the private sector are fundamental aspects of post-conict economic recovery. If businesses are not market-based and instead reliant on aid agencies to create demand for products, these businesses will not be sustainable once program support is withdrawn. Further, opportunities for employment are often very limited in relief-dependent settings. Enterprise development has a strong role to play in job creation for displaced people both in existing markets, as well as in new markets that can stimulate new demand and lead to more job opportunities. The introduction of new businesses and the enhancement of existing businesses can create a source of income for many households. In addition, these efforts can create a more sustainable private sector that decreasingly depends on aid agencies. In post-conict and crisis settings, there is a need to build it back betteralso known as B3an approach to reconstruction that can be done in a smarter way to mitigate or prevent conict, or support communities to be more resilient to shocks and upheavals.12 Another important element that can develop markets in the relief stage involves: Wise use of subsidies (which) can jump-start markets, while assisting particularly vulnerable small enterprises to replace or build assets so that they can participate in the high impact economic activities being stimulated. It is complemented by upfront planning to support more rapid transition to more commercial and sustainable transactions.13 While it may be necessary to provide initial grants and payments in order to develop markets, it is important to phase out such assistance so that programs are sustainable. Because livelihoods are a key protection tool for displaced people, it is
195
fundamental to reframe humanitarian assistance and development in such a way that builds the capacity of participants to generate income and gain self-reliance, thereby reducing their vulnerability in the long term.
COMMON SHORTCOMINGS OF ENTERPRISE DEVELOPMENT INTERVENTIONS

Practitioners predominantly seek to offer immediate relief in order to respond to emergencies and address basic needs for populations in need. However, such investment is short-sighted in that it does not allow for the sustainable economic development critical for post-conict and crisis environments. The SEEP Network notes that: if these efforts ignore market dynamics or the importance of supporting equitable private-sector growth, they can have only a eeting impact. Worse, there may be immediate negative effects if markets are ooded with low-priced commodities, wasteful parallel distribution systems are created, SEs [small enterprises] run by the poor are excluded, or investments are encouraged in sectors that are not viable in the long term.17 A balance must be found between providing needed assistance and making investments in the long term self-reliance of displaced populations. Once they have the tools and resources to generate income, gain savings and/or make investments, their vulnerability will be greatly reduced and their food security will be greatly increased and they will likely have greater stability once they transition to a durable solution post-displacement. Enterprise development programming must likewise ensure the sustainable provision of business development servicessuch as training, technical and marketing assistance, advice and mentoringand/ or working capital nancing to build their capacity. Such an effort should enable microentrepreneurs to build skills that will develop their ability to adapt to change, make decisions and grow their businesses when markets change and the intervention is no longer in place.18
ENTERPRISE DEVELOPMENT IN CONFLICT AND POST-CONFLICT SETTINGS

Settings affected by conict and crisis are characterized by weak markets, disrupted supply and distribution networks, devastated infrastructure, insecurity, displaced persons, limited local capacity, and the lack of industries with high potential for poverty alleviation and economic growth, and under these formidable circumstances, while it is recommended to begin an enterprise development intervention very soon after a crisis, certain conditions must be met.14 Such preconditions include: Nascent, functioning markets; evidence of some market activity beyond black market trading in relief commodities; Reasonable security in at least the capital city and surrounding areas; General population stability in terms of mobility and basic needs.15 Conditions that are ideal, but not essential, for the development of enterprise development programs include: Resumption of international and regional trade that open up higher prot activities; Restoration of infrastructure, such as road networks and electrical grids; Return of a positive business environment through macro-level enforcement of laws or improvements in policy.16
196
While an ongoing challenge, SEEP has found that approaches that both promote the local private sector and develop markets are promising: In providing relief commodit[ies], great strides have been made by using the private sector to improve delivery of food, clothing and shelter to meet immediate human needs. These marketintegrated relief efforts reduce or avoid market distortion and strengthen the local private sectors capacity.19
RAPID AND IN-DEPTH MARKET ASSESSMENTS

Depending upon the time and resources available to conduct an assessment, a lengthier, more in-depth assessment can be conducted, or a rapid assessment can be used to gain just the essential information needed in order to be able to proceed with the intervention. Dening Objectives. Before beginning the assessment, Oxfam advises dening objectives that will frame the survey:22
PRELIMINARY STEPS
It is essential to conduct preliminary research and assessments. Enterprise development interventions must be based on a sound understanding of the market and designed to take limited infrastructure and human resources into account.20 SEEP recommends that market development programs tailor program activity to the nature and extent of the particular market disruption.21 To mitigate security risks or inadvertently contributing to vulnerability or fueling conict, it is important to understand the ways in which the political economy has a role in the host and displaced communities. Researching and identifying suitable marketsand the nature of their constraintsfor enterprise development is key so that program participants follow a path toward sustainable livelihoods development, and the investment in time and resources is not undermined. Market researchwhere accessible is fundamental to understanding the industry and anticipating factors for success. Identifying market opportunities for program participants must be accompanied by providing participants with access and linkages to markets and value chains that may already exist. Step 1. Determine which market systems are the most important to assess and analyze. Conduct baseline analysis to determine which markets people rely on the most and what the impact of the conict/crisis has been in terms of access to and use of markets.23 Step 2. Determine how a particular market system will respond now to increased demand/purchasing power. If a conict or crisis has occurred, or another acute shock to the market system occurs, how will the market respond to extra-ordinary emergency needs and any proposed cash-based interventions.24 Step 3. If it is predicted that there will be an inadequate market response to the crisis or cash-based interventions, what can be done to mitigate this inadequacy through emergency market support actions? Is there any need for non-market measures (such as in-kind distributions)? If so, what kind, how much and for how long?25 Step 4. Determine how much time and how many resources you are likely to have, both for assessment and subsequent programming.
197
Available time and resources may inuence the questions you ask; it is hoped that you will not need to alter your objectives or key questions too much because of resource constraints. An alternative methodsuch as a rapid assessment techniquemay be more suitable. You should also think about the kinds of resources that may be available for programming once the results of the assessment are known.26 Baseline Information. In both rapid and lengthier assessments, gathering baseline information is critical for comparing pre- and post-conict or postdisaster conditions and coping strategies. Information gathered should be disaggregated by gender and target groups. Oxfam advises answering these essential baseline questions: Information on the peoples livelihood activities: what are the major activities they engage in to get access to adequate food and cash to meet their basic needs? Identication of the most essential items that the household needs to surviveand estimates of the general prices of these commodities. Factors that inuence their level of vulnerability and identication of the most vulnerable within a community. Identication of common shocks Information on what strategies they typically employ to cope with a shock. Levels of assistance that are already being provided, targeting procedures for that assistance, and mechanisms for delivery.27 If there is no time or means for conducting a baseline assessment, the following sources may provide some useful information:
National staff and expatriates who have been working in the area for a long time. Ministries. Nongovernmental organization (NGO) situation/mission reports. Local universities. Key informants: traders, farmers, women, people displaced from the affected area. A few focus group discussions with affected communities.28 NEEDS ASSESSMENT Once baseline information is gathered, conduct a needs assessment comprised of the following questions: 1. Who are those who are most in need of assistance or most at risk? 2. How many people are at risk and/or in need of assistance? 3. What type of assistance do different groups require? 4. How much assistance do they require? 5. When, and for how long, should assistance be provided?29
MARKET ASSESSMENT A market assessment is crucial in selecting the most appropriate intervention, because it collects market information from different sourcessuch as key informants, consumers, manufacturers, suppliers, traders, trade and business associations, government agencies, donors, large rms and industry experts and identies the supply and demand for products and services. It is crucial to match population needs with market demands.
198
Once the needs assessment data has been gathered, use the following questions to determine the context, demand and needs: What are the causes of market instability? Which geographical areas have been most affected/are most food insecure? How severe is the market disruption? Which livelihood/population groups are worst affected? Are people able to meet their food needs given current market conditions? Are people using coping strategies that are damaging to their livelihoods? How long are market support or non-market interventions likely to be needed? What are the external and internal capacities to respond?30 Additional important questions that practitioners should consider that will help them determine the most appropriate response for livelihoods in enterprise development include: If community members are currently conducting businesses, what are the main sources of income? What are the strengths and weaknesses of those sources of income? If community members are already engaged in economic activities, what are the best ways to support them? Can these businesses be supported to expand? Can microenterprises be grown into small enterprises? Can small enterprises be grown into medium enterprises? What are the interests of potential participants? What skills do they already possess? What are their daily activities that could be developed as skills? What social and economic assets do community members already possess?
What other relief/development initiatives are in progress? What do community members identify as unmet needs? How has the private sector responded to the conict/disaster? How does it typically respond to economic shocks? How are vulnerable groups currently included in economic activities? What inuences the market? Factors may be historical, sociocultural, political, linguistic, religious or environmental, at the local, national and international level. In order to fully understand the context, some additional topics and questions include:
ENABLING ENVIRONMENT By assessing the business environment, you can determine if the preconditions are met to engage in an enterprise development intervention. What government restrictions exist? Are there restrictive policies or regulations that limit enterprise development? Are there taxes or tariffs on businesses? How are contracts or other commercial laws enforced? What are the barriers to entry in the market? Is there adequate infrastructure for transportation to and from the market? How far is the target population from the market and how much does transportation cost? Do the potential prots sufciently outweigh the costs to make work and traveling worthwhile? What types of technology are available? What is missing? Is there a concentration of economic activity in the local market? What role does the conict play on economic
199
activities? How are people vulnerable as a result of the conict? Does it restrict people to safe areas or limit the market or the introduction of supplies? Are businesses restricted by cultural traditions, social networks or gender roles? Are there environmental constraints that would limit long term sustainability? (E.g., are certain crops in a farming enterprise less resistant to drought or ooding?)
What types of crops are common? What are the necessary inputs and where do they come from? Are there crops that were previously grown and now are not? Why? What are the available resources, materials and inputs? What are the constraints to production and their possible solutions? What are some of the raw materials available? What goods are produced in the local markets? What size is the local/regional market in monetary terms?
MARKET DYNAMICS What are the most important goods in the market, according to customers and key informants? Where is there an unmet demand for services? Consider consumption trends for a particular product/service (volumes, prices and the quality of the product). People may only purchase basic necessities during crisis situations and may look for cheaper alternative goods. Consider competition in the market. This determinant should examine the potential of a business/subsector/industry for improved processes, efciency, quality and increased responsiveness to market demands. Determine market potential for expansion. (e.g., ask business owners if there is an important service that they have not yet accessed, such as advertising, technical training, business management training, accounting, or access to the Internet).31 What is the protability of different niches? Are any sectors ooded with an overabundance of supply? Is there a link between small enterprises and large rms? Is the market addressing the needs of the local community? Is there a diversity of services and products offered?
ASSESSING INTERVENTION POSSIBILITIES Can the gaps in current economic activity be addressed by an intervention? What supportive services are available? (Input supplies, access to credit, transportation services, quality assurance processes, technical and business expertise?)32 Is the economic activity or industry prior to the conict still a viable option for generating income? What is missing? How can businesses be revived? What products and/or services are existing businesses providing? How can they be enhanced? What are the strengths and weaknesses of current markets? How can an intervention utilize the skills that community members already possess? How will an intervention affect the surrounding community? How can they be included? If some people are included, will others be excluded? How could an intervention impact the conict situation? Could it change access to resources? Create or exacerbate socioeconomic tensions? Alter economic growth or food security?33
200
CASE STUDY Youth Participation in Market Assessments in Southern Sudan34
The International Rescue Committee (IRC) trained youth in Southern Sudan to work alongside a project team to conduct a basic market assessment and determine potential protable microenterprises. Youth participants learned how to identify key market gaps and areas for growth, a skill set they can continue to use as markets change with time. Youth also had the opportunity to engage with community leaders, business owners and local consumers during the process. The market assessment therefore provided youtha population often excluded from but anxious to participate in the decision-making processwith an opportunity to become an asset to their communities and local governance structures. Involving communities in the market assessment process supports the long term sustainability of livelihood interventions; ensures project team consideration of the needs and interests of its participants; generates a stronger local commitment to microenterprise projects; and offers a better transfer of knowledge as community members learn how to conduct analyses independently in the future.
MARKET RESEARCH
Research existing market and labor surveys from donor organizations like the World Bank and USAID, and local and national governments to nd viable industries for intervention and to gain an understanding of economic activity prior to the conict or crisis. This is particularly important for enterprise development interventions, because the goal is to strengthen the private sector, independent of aid agencies.
participants by improving their operational capacity and protability, and enabling linkages to markets. Understanding the full range of activities required to bring a product or service from conception to a nal consumer market enables practitioners to identify and support the most appropriate intervention, with technological development, technical assistance, skills training, marketing or access to nancial services. Industry selection should be based on the market potential, opportunities for leveraging the market, or increased business opportunities to expand a product in high demand. Value chain analysis is particularly useful in the context of enterprise development, because it claries ways in which producers can increase and maximize their prots by augmenting efciency. The identied series of activities can create a path for entrepreneurs to begin to gain access to the economy. Value chain analysis allows practitioners to identify growing markets and nd the best ways
VALUE CHAIN ANALYSIS When developing an enterprise development intervention, it is important to conduct a value chain analysis to facilitate and strengthen linkages with local, national, regional and international markets. Mapping out the value chain will enable practitioners to understand how they can support
201
to bolster businesses by exploring barriers to growth and nding opportunities in local and regional markets. In many cases, producers entering the market for the rst time have a limited view of the market process. In particular, women are more likely to start businesses that only build upon their existing knowledge. A value chain may help illustrate how their product ts into the marketif they should focus on a particular aspect of production or distributionhow marketing and development can increase their reach, and the level of quality required in the nal product. Mapping the value chain will help create a systemic approach to program design, improve the potential of businesses, enhance their contributions, clarify market actors, and help dene relationships between suppliers, producers and customers. VCA is also helpful in tracing the ow of goods at different stages and identifying ways businesses can contribute to the value chain. To illustrate this point: traders add value to the output of farmers by providing market information, specic product information, access to the market, and feedback on product quality. In a similar way, traders add value to processors by combining quantities from farmers to sell in aggregate, providing feedback on quality control, transportation of goods and the nal sale of the product.35 Assessors can get the required information from research and interviews with key informants. Here are some steps to follow:
202
Steps Select an Industry/Subsector Study those with the highest potential for growth.
36
Actions Select a subsector, using the ndings of the market assessment. Familiarize yourself with the business environment.
Research the Subsector Include participants, technologies, product ow and history.
It is necessary to utilize all possible information about the functions of the value chain, such as: producers, participants, buyers, the sociocultural environment, nal markets, supporting markets, upgrading possibilities and industry experts. Where do you get raw materials? To whom do you sell your output? What technology do you use? Have there been any major changes in this sector in the recent past?
Consider using community discussions for research. Map the Value Chain Designing the map of the value chain is an important step in determining the functions of each participant, as well as understanding the markets and overall industry. Include functions, participants, technologies and nal markets; outline the functions and the market, map participants, draw product ows, and dene principal channels.
Example
Harvesters
>
Processors
>
Manufacturers
>
Traders
>
Exporters
A sample value chain map would include various components, such as: Inputs (tools, equipment, labor, capital, training and technical assistance) Production (using inputs to produce or process goods to add value) Transportation/Distribution (transporting goods to buyers or distributors) Trade/Market Access (getting nished product(s) to local, national, regional and international end markets)
203
DESIGN
Some principlesstill in progresshave been identied by the SEEP Network that attempt to identify elements needed for good market development program design:37 1. Understand and address the role of current key market actors Programs should either work with or complement local ownership of program initiatives rather than compete with or exclude the private sector. Programs should be wary of a lack of transparency and aim to promote more equitable trading relationships. 2. Increase sustainability by promoting commercial relationships Practitioners should facilitate service delivery by building up the capacity of local enterprises. Further, productive, ongoing, and long term relationships are those that are based on economic incentives that will remain relevant after a programs completion.38 3. Work with many lightly rather than few intensively It is advisable to work with multiple enterprises, which reduces the risk potential of distorting the market or a high concentration of power or inuence of a few actors. 4. Identify opportunities for leverage and scale Programs should target sectors and related activities that have the potential to jump-start economic reconstruction and/or provide opportunities to large numbers of vulnerable enterprise owners. Pilots of new services, products or trading relationships that demonstrate value to enterprises and the local economy will spur copy cats and broader change in the market.39
To ensure fairness, programmers should use transparent selection criteria to identify the most enterprising and motivated individuals. This can help to establish lead rms who act as role models, employers, market innovators and mentors for successive entrepreneurs. The SEEP Network has determined that a developed market will have the following components: 1. An expanding market, with growth in sales and participation by increasing numbers of businesses; 2. A resilient and responsive market, that can withstand shifts in demand, supply and competition; 3. A market that channels benets to the poor; 4. A supportive business environment, and a process in place to improve over time; and 5. The presence of a change driver, such as a business association, to continuously improve market conditions.40
SELECTING AN INTERVENTION
In designing an enterprise development intervention, practitioners should keep in mind the distinction between supporting existing businesses and establishing new enterprises. Many of the design steps are applicable to both approaches. The rst step in the design phase is to use the ndings from the assessments conducted to discover the needs, constraints and opportunities in the market. To structure an intervention based on market demand, participants need to be aware of the current social and economic environment while
204
using the value chain analysis. This step will take into consideration ndings from the assessments that identied: Needs of the community and the market demand Constraints in the market, such as lack of knowledge about marketing, government restrictions, gender perceptions, access to institutions, transportation costs, market access, tariffs, import/export procedures, stigmatization or discrimination, and/or limited social networks Opportunities in the market, such as unique local resources, value-added inputs, land for agriculture, collaboration opportunities with hosting community, training facilities, access to credit, and input suppliers Even in a highly subsidized relief environment, SEEP has identied ways of developing market opportunities: Develop services and products in markets that relief programs do not target (e.g., appropriate technologies and market information) Leverage existing relief activities (e.g., working on market links in sectors where relief programs are providing free inputs) Differentiate program services (e.g., providing more market-oriented or interactive training) Ensure focused analysis on client needs prior to program design (e.g., surveying target enterprises to guarantee demand-driven services) Incorporate programs for different levels of clients (e.g., developing services for affected groups that are not eligible for relief programs)41 In the second step of the design phase, practitioners should take certain considerations into account: Whether resources needed to develop an intervention are locally available, low-cost, technologically appropriate and will not have a
negative environmental impact. What tools and equipment the participants already have access to as well as what tools they will need, and how they might obtain them. Assess available technologies necessary to support businesses. In the third step of the design phase, practitioners should discover points of leverage and possible interventions by considering the following questions: Which constraints have the greatest impact on existing enterprises? Which constraints can the program best address? How can practitioners build the capacity of participants to address constraints that may arise over time? Are there points where large volumes of product pass through the hands of only a few actors? Are there opportunities to extend the reach of the enterprise when enterprises cluster together? Consider networking or collaboration. What intervention types will maximize resources and opportunities? In the fourth step of the design phase, practitioners should explore ways to promote market-based solutions to constraints faced by medium, small and microenterprises that facilitate relationships among the different market actors. Below are some potential areas of assistance for particular ndings:
205
Areas of Need42
Producers lack information about the market
Possible Intervention Assistance

Provide producers with more market research. Teach producers how to access market information. Connect producers with manufacturers and consumers to get a better idea of market needs.
Poor product quality and processing systems
Provide technical training and follow-up. Connect producers with manufacturers and consumers to get a better idea of market needs.
Participants lack general business skills The market is distorted by relief services and goods Restrictive business environment based on government limitations, resulting in lack of access to the market Lack of organization among producers that hampers market access and product quality
Provide technical training in business development skills. Work with local government and NGOs to discuss ways to make business development services more effective. Support the restarting of businesses that existed before the conict/disaster.
Advocate with the local government for policies more inclusive of the refugee/IDP population. (See Working with Host Governments chapter for more information.) Consider improving access to alternative markets such as organic and fair trade markets. Businesses may gain access to additional markets, improve product quality, sell more efciently, and better represent themselves when they are aligned through a business association. This way they can purchase supplies and sell in aggregate, which will decrease input costs, increase the quantity sold and improve market access.
Other determining factors to consider: Available and accessible resources and material inputs. Consider in-kind grants for material inputs. Demand for particular products/services in the host community and local home economy. Available training. Available startup funding and access to credit.
Demography of the host community and target population, including cultural practices, education and background. Host government policies. Possible resettlement/repatriation of target population. Other relevant complementary programs, such as vocational training and micronance.43
206
CASE STUDY Gaining Access to Alternative Markets44
An organization in Thailand, WEAVE,45 wanted to nd a way for women in the refugee camps to engage in enterprise. However, access to local and national markets is highly restricted by government policies. They knew the women wanted to utilize their traditional weaving skills, but are restricted from selling their products outside the refugee camps, and the market in the camps had little demand. As a result, they decided to reach out to alternative, foreign markets. WEAVE builds the capacity of female producers by linking them to buyers in more lucrative markets and organizing the producers into collectives that enable them to increase their negotiating power. Agencies such as WEAVE have recognized that one way to help participants gain access to markets is to help them reach out to alternative markets, such as fair trade markets. This is a particularly important strategy when access to local markets is severely restricted due to government policies, complicated logistics or conict. Alternative market access provides opportunities to reach different consumers and enables production to grow with an expansion of market demand. There are several steps in this process, which WEAVE has helped facilitate for its program participants: rst, assessing the demand for fair trade products; second, identifying fair trade markets; and nally, facilitating the introduction of the weaving enterprises to the appropriate fair trade companies. WEAVE serves as an intermediary that buys from the refugeeswho are not allowed to leave the campsand sells their products for them through the Fair Trade Federation,46 an organization that sells crafts in international markets and to individuals through their website. This has been a protable venture for the refugee women, and has increased their connection to sustainable markets.
207
VALUE CHAIN ANALYSIS IN PROGRAM DESIGN

Understanding the value chain is essential for successful enterprise development programming. USAID advises: Addressing and reducing value chain-related conict issues can be an explicit intervention objective in which strategies, activities, anticipated impacts and indicators ow from a conict analysis and speak directly to conict issues.Practitioners should not assume that a standard value chain project will necessarily have a positive, peace building impact; this type of outcome needs to be built into a project, and human and nancial resources and the time needed to build relationships and trust allocated accordingly.47 In this context, it is advisable to analyze the context, actors and the possible interaction between conict and the value chainas well as the indicatorsfor each step of the design process: Strategy > Design > Inputs > Activities > Outputs > Outcomes > Impacts48 Using a value chain analysis, it is also possible to identify ways to increase the competitiveness of existing businesses by upgrading, a process that increases the value of the product by: increasing efciency in labor and use of resources through improved organization or management; improving product quality through accountability and quality checks; and nding a new market in which to sell goods.49
208
CASE STUDY Using Value Chain Analysis to Design an Intervention50
An American Refugee Committee microenterprise development program in Uganda conducted a market assessment and value chain analysis to determine ways to build the economic capacity of women in a refugee camp that they were preparing to repatriate. They wanted to involve these women in the development of new enterprises. Through their assessments, ARC discovered potentially protable sectors in shea nutlocally referred to as luluprocessing, as well as in beekeeping. ARC identied ve areas of constraint in this sector: technology/product development, markets access, input supply, management and organizational policy, and nance and infrastructure. They identied a couple of constraints in technology, namely: poor quality honey and inadequate beeswax processing techniques, which resulted in low quality products. In response, the program developed corresponding interventions to mitigate the identied constraints. Female participants, self-organized into producer groups, were linked to technical training that focused on improving production, and processing through new technologies and quality control. Participants attended training sessions to better understand the techniques required to produce high quality honey and beeswax, including: training on managing bees and the correct ways to process the product, and pricing and marketing the product. Because the intervention process required experienced trainers, this program searched for local NGOs with technical expertise to link to the groups. In addition, ARC hired staff with a general knowledge of enterprise development, and they conducted general business skills training directly with the womens groups to build their overall capacity to absorb the more complex technical training. Through networking and research, ARC found business partners with a desire for processed lulu nuts, beeswax and honey. These relationships enabled the displaced women to obtain technical assistance, as well as quality recommendations and nal product requirements. The women were trained in processing skills and equipped to train others in quality processing. This helped ensure the sustainability of the project because the trained women could train incoming participants in the absence of the program staff or even after the programs termination. Because the participants lacked the necessary equipment, the program leased the xed assets to the participants. They then looked for a producer or manufacturer to provide added value in the form of manufacturing. Once they had the nal product, they looked at other ways to improve the process. ARCs value chain analysis was an essential part of this intervention, as it allowed identication of the value chain, key leverage points, constraints, and potential market-based solutions for an enterprise development intervention of the lulu nut and beeswax sector to enhance the protability of the women refugees businesses. Value chain maps for both lulu nuts and beekeeping were developed by the American Refugee Committee, and can be found in the Value Chain Analysis section of the Tools at the end of this Field Manual.51
209
IDENTIFYING PARTICIPANTS
The selection of enterprise development participants should be based on the unique needs of communities. The main criterion should be the ability of the participant to engage successfully with the program. A person who is economically active, motivated and committed is the most appropriate participant, and most likely to maximize the potential benets of an enterprise. However, there are other ways to select participants, by looking at a number of factors such as: men and womens access to other productive assets, potential to access capital, and links to the local market. Several questions can be considered in this process: Do participants have any previous business experience? What skills do they have? Do participants have a desire to engage in enterprise development, either individually or as a part of a group? Are the program goals social or economic in identifying target populations? Are participants in one sector located close to one another geographically? Are they located close to markets/outlets for their goods and/or services?
Most displaced people are trying to earn income in some capacity and may need asset transfers to restart their businesses in the displacement setting. Assessments should not include program staff that will have any biases against potential participants. Displaced community members should determine their needs and the extent of their ability to participate.
CONCERNS RELATED TO TARGETING GROUPS When a particular population is targeted for inclusion in a program, conict or tension can arise between those who receive assistance and those who do not. One remedy for this is to target sectors instead. By targeting a sector, practitioners can focus on the skills of the vulnerable groups that match the enterprise, and include these groups on that basis. For example, if a program targets infrastructure reconstruction as a sector, they may attract more able-bodied individuals than older people or people with disabilities. An additional benet for sector selection is that certain development projects will benet the broader community more than others, such as road reconstruction for access to markets. In contrast, targeting craft production as a sector is likely to reach women, youth, older people, and people with disabilities.52 Caution, however, must be given to promoting so-called traditional or stereotypical roles to certain groups. The most effective programs choose only the sector or subsector rather than the specic enterprise, and link participants to the resources necessary to improve protability.
INCLUSION OF VULNERABLE GROUPS It is best for social cohesion if vulnerable groups are identied along with economically active participants to ensure there is equal access to the program. The most effective way to ensure the inclusion of vulnerable groups in programming is by identifying activities and sectors that allow for greater inclusion. It is important to also identify the main obstacles to program inclusion and address them through modications in program access and design. However, practitioners must be cautioned about assuming that some individuals are too vulnerable or unable to engage in enterprise development.
210
CASE STUDY Accounting for Restrictive Gender Roles in Enterprise Development53
A joint Mennonite Economic Development Associates (MEDA) and Enterprise and Career Development Institute (ECDI) livelihood program in Pakistan wanted to reach out to homebound rural women who embroider as part of their cultural tradition to develop an embroidery enterprise. To compensate for the many restrictions on the mobility of these women, the agencies established a woman-towoman network through which female sales agents, who could have more open contact with rural women, were dispersed to provide them with market information and connections to traders who would purchase the embroidered goods and sell them in surrounding markets. The program, which allowed the rural women to work from their homes, focused on developing the capacity of the female sales agents to assist in quality control, linking women to suppliers, and identifying possibilities to upgrade or expand the enterprises. The project resulted in an average increase in income to $20 USD per month$240 USD annuallysignicant growth over the $6 USD that was the average monthly income prior to the implementation of the project.
SUPPLEMENT TO ENTERPRISE DEVELOPMENT INTERVENTIONS: IN-KIND GRANTS

In some cases, asset transfers, such as in-kind grants, may help revitalize businesses or stabilize incomes in the short term. In-kind grants may include production inputs and tools to assist in the development of new and existing enterprises. Specically, in-kind grants may take the form of: agricultural tools, seeds, livestock, support services or toolkits. They are designed to help participants practice a skill and create a source of income through the grant of a product that will help in the process (e.g., a wheelbarrow for waste collection). In-kind grants can assist in asset replacement or can be accompanied by instruction. However, these grants are most effective when combined with training, marketing assistance and market linkages, which enhance business potential. They can be implemented in a variety of ways: after the completion of training,
in installments or as a match to savings. However, SEEP advises that it is important to set expectations that the provision of grants will be a one-time event.54 Grant eligibility requirements must also be clear so as not to undermine any micronance loans, and ensure effectiveness.55 Interventions utilizing in-kind grants can act as a complement to enterprise development or other livelihood interventions, but may be best suited as an alternative to micronance for unstable situations. These grants provide a way for participants to engage in enterprises without access to credit. Further, the use of in-kind grants can enhance a participants enterprise in lieu of monetary grants that might be used for consumption. At times, in-kind grants may better facilitate the development of enterprises, especially when local supplies are unavailable or highly priced. Practitioners should provide in-kind grants to participants with locally produced items whenever possible.
211
IMPLEMENTATION
CASE STUDY In-Kind Grants56
ONGOING MONITORING
Economic revitalization is an essential part of conict recovery. In Liberia, this is particularly important, because the conict ravaged the private sector, leaving many people without a way to secure a livelihood. In one case, a man who was a mechanic and owned a garage that was looted during the war wanted his business to recover, but lacked the necessary supplies. One development group offered a toolkit for mechanics as an in-kind grant, and in return the man agreed to take on two ex-combatants as apprentices.
In order to manage the impact of the intervention, ongoing monitoring is necessary to determine positive and negative effects and track progress. Monitoring is assisted by a good work plan and well-dened indicators. Ongoing monitoring can help clarify questions about the interventions effectiveness, sustainability and impact. In post-conict, post-disaster and crisis settings, security, the rebuilding of infrastructure, and the alternate presence and withdrawal of international agencies can result in changing conditions for market development. As a result, it is important to conduct not only ongoing monitoring of the enterprise development intervention, but also frequent and less in-depth market assessments to gauge changing conditions: The frequency of market assessments will capture the situation as it changes and also make up for the more limited information captured during each iteration.57 This provides continuous feedback that can enable programs to adapt and better link entrepreneurs to services, materials input, nancing, raw materials and transportation links. Questions to consider: How does this intervention t within the realities of the market?
ENSURING SUSTAINABILITY
In order to ensure sustainability, it is important to work with communities throughout the enterprise development process. Involving the community in market assessment, determination of need, choice of programs, and the identication of participants enable a stake in the success of the program and in doing so, support its sustainability. Connecting participants to other complementary programs like micronance or business development training can also facilitate sustainability.
212
Are you developing partnerships that strengthen the private sector? Are there social goals that need to be addressed as well? Have there been any changes in government policies that affect businesses? How has the intervention altered the income of participants? What are participants spending their income on? What are participants views of the program? How is the program meeting its objectives? How is the community involved in program implementation and monitoring? How is the market reacting to the increase in businesses? How has the intervention affected community roles? Are participants more or less susceptible to discrimination? What is the effect on women and vulnerable groups? Is the program supporting businesses in the most effective way possible?
CASE STUDY Holistic Approach to Enterprise Development58
Those living in extreme poverty are often left out of traditional intervention efforts due to greater social discrimination and higher health risks. A BRAC program in Bangladesh seeking to address the needs of the ultra-poor started participants on a food aid program that guaranteed 18 months of food. During this initial stage, BRAC recognized that the participants would be suitable for enterprise development, and engaged the group in establishing new individual enterprises, such as poultry farms. They found that eggs could be sold into the market rather easily, and so distributed chickens, and monitored the progress of the businesses. As a result of their success in enterprise development, the program then connected the participants with savings programs and access to credit, which ultimately assisted them in upgrading their businesses. BRAC used holistic programming to help the program participants achieve sustainable livelihoods by addressing their needs for food, income and economic security through three separate but interconnected interventions.
213
COMMON CHALLENGES AND LESSONS

Consider changes in the local environment and their effect on the markets. Markets continue to change and evolve over time. Pay attention to changes in the local environment that can have an impact on enterprises. For example, reforms of restrictive government policies may allow more freedom to pursue enterprise development and should be taken advantage of.
incorporates the individual identity of all the members.61 Participants should be engaged in the enterprise as individuals but cooperate in a way that is benecial for the group. This can mean setting guidelines on contributions and labor, as well as individual ownership of enterprises. The focus should remain on individual activities that are sold or marketed collectively. Consider logistical difculties and challenges of restrictive settings. In order to set realistic expectations for producers and customers, pay close attention to obstacles such as market disruption in post-conict settings, or restrictive policiesand consider the impact on production. For example, one program in Thailand had difculty exporting to international markets because of government restrictions on mailing goods. This created a problem for customers who wanted the product by a specic date, so the program had to focus on communicating with the customer about realistic delivery dates and advocating with the government to loosen restrictions.62
Maintain a gender lens. Throughout the process of implementation, keep in mind the effect of the program on women and girls. For example, the Karen Womens Organisation,59 in partnership with WEAVE, makes this a top priority. One of their programs introduced women to handicraft weaving, but they realized many women were unable to take advantage of the program because they were caretakers of children. In response, WEAVE created a nursery school program so women could leave their children at school while working on their handicrafts. They also developed ways for women to work from home so they could maintain their household responsibilities. Be careful not to create false expectations. It is important in the design and implementation stages to avoid giving false hope to program participants about the potential success of their businesses. Maintain realistic expectations based on the realities of the market.60 Pay close attention to the individuality of participants in group sales activity and joint marketing. In group enterprises, it is essential to work with multiple members to create a strategy that
Monitoring throughout the program will help identify challenges and areas for improvement, as well as inadvertent effects of an intervention, such as:63 Obstacles to Sustainability There may be obstacles to conducting a comprehensive market assessmentsuch as insecurity and dangerous infrastructurethat limits the capability to fully evaluate the market, resulting in an inadequate assessment. Incomplete assessments run the risk of implementing less-informed interventions, which may not be sustainable.
214
Dependency on Aid By supplying inputs for participants, programs run the risk of creating unrealistic expectations. Sustained income and reduced vulnerability must remain the overarching goal. Independence and sustainability are the ultimate measures of success in enterprise development. Negative Impact on Existing Businesses and Producers Introducing relief goods can disrupt local markets through the inux of additional supplies. Similarly, when businesses are introducing goods to the market, it is important to assess whether the new supply will ood the market or if the market is capable of absorbing the additional goods. Further, the introduction of supplies from nonlocal producers could increase the vulnerability of both the host and displaced communities. Goods that can be produced and procured locally have both social and local economic development benets. Oversupply can drive down market prices and decrease the prots of local producers. By contributing relief goods such as food, the increase in supply can negatively impact the community and weaken the ability of local producers to sustain their own livelihoods. Enterprises May Take Focus Away from Other Objectives Enterprise development facilitates the ability of participants to become self-reliant through the creation of income, resulting in increased economic security. However, the introduction of income may also direct attention away from school or household responsibilities, which can be detrimental to women, youth and other groups.
ADJUSTING THE INTERVENTION

The process of ongoing monitoring should identify negative effects and unintended consequences, which may necessitate adjustments to the program. Successful interventions adjust their programming by: developing additional guidelines to address negative consequences assessing the market on a more frequent basis involving the community in the process of assessment, the selection of participants, and evaluation altering the program to reect new opportunities in policy reform
215
CASE STUDY Adjusting the Project According to Monitoring Results64
In the development of technology for the impoverished, one organization developed a powerful irrigation pump for agricultural improvement. This pump enabled producers to irrigate their land and lessen their dependence on rain-fed crops, which allowed for a second off-season crop, thereby signicantly increasing their yield. After designing and testing the manual pump, the organization sold it to entrepreneurs. During their monitoring of the product, they realized the irrigation pump worked well, but it was not an appropriate technology for women because foot treadles were set too high. The height of the treadles made it difcult for women to use because of their long dresses, a design aw that caused the women to lose critical opportunities to increase their production and sales. As a result of the monitoring, the development agency adjusted the pedals so women could use them.

In order for enterprise development interventions to create sustainable businesses, the enterprises need to be able to function efciently after program support withdraws. Enterprise development interventions are designed to solve constraints, maximize opportunities, and create sustainable businesses, all on a time frame corresponding to a parallel phase-out of program support. The termination should depend on benchmarks established during the design phase and assessed during monitoring. While the benchmarks should not change according to the programs progress (or lack thereof ), other measures, discovered during the course of the program, may be better indicators of success. The exit strategy
can depend on a number of benchmarks at three levels: the enterprise level; the market solutions level, which identies whether solutions to market constraints are working; and the program facilitation activity level, to gauge whether the actual program activities to facilitate linkages have worked according to their indicators. Other benchmarks include: There is a high degree of reliability that businesses will function independent of program intervention. A number of participants have created protable businesses. Businesses have demonstrated the ability to absorb shocks to the local economy. Entrepreneurs have access to nancial services like microcredit.
216
EVALUATION
MEASURING SUCCESS
The fundamental goal of an enterprise development intervention is to enable people to become selfreliant through enterprises that generate income and enhance economic security. There are several ways to measure this: income generated, businesses and jobs created, and/or inventory turnover. However, there may be challenges in collecting data, because participants may not have adequate accounting methods. More importantly, participants may be reluctant to share their income information due to its personal nature. It is important to ask questions in a less direct way if you feel participants may be guarded about sharing their nancial information.65 Below are some questions to ask program participants in new and existing enterprises: Were linkages effectively established between displaced program participants and markets? Has there been an increase in the households income level? Has the household been able to increase their savings or accumulate assets? Has there been an increase in the nutritional intake within the household? Were women and vulnerable groups included in the program? How did the intervention affect community relations? How did the intervention affect the private sector? Did it strengthen the private sector, or overwhelm it? Were initial objectives met? Did they meet benchmarks in the time allotted? Were products and services modied to better meet market demand? Were new markets reached? Was productivity enhanced? Were production costs lowered? What is the overall perception of the intervention, according to participants? Were there any unintended consequences?
217

Abdelnour, Samer et al. Examining Enterprise Capacity: A Participatory Social Assessment in Darfur and Southern Sudan. York University Center for Refugee Studies, 2008. www.yorku.ca/crs/Publications/Sudan%20Enterprise%20Capacity%202008. pdf. American Refugee Committee. The Stepped Approach for Improving Livelihoods (SAIL): An Implementation Manual for Refugee Camp & PostConict Environment Programs. First edition. www.
arcrelief.org/site/DocServer/IGP_Manual_Proof_3. pdf?docID=321.
mended management and policy options for employment friendly reconstruction in Sri Lanka, 2005. http://ilo.law.cornell.edu/public/english/ region/asro/colombo/12microandsmallenterprisepro motionA.htm. . Small Enterprise Development resources, including business development services, value chains, and women and youth entrepreneurship development. www.ilo.org/dyn/empent/empent. Portal?p_prog=S. ILO-UNHCR Partnership through Technical Cooperation. Building Entrepreneurial Capacity for Returnee and Refugee Women in Angola and Mozambique. 2006. www.ilo.org/public/english/employment/crisis/download/angmoz.pdf. McVay, Mary and Alexandra Snelgrove. Program Design for Value Chain InitiativesInformation to Action: A Toolkit Series for Market Development Practitioners. Mennonite Economic Development Associates (MEDA), December 2007. http://communities.seepnetwork.org/edexchange/ node/232. Miehlbradt, Alexandra and Linda Jones. Market Research for Value Chain InitiativesInformation to Action: A Toolkit Series for Market Development Practitioners. MEDA, December 2007. http:// communities.seepnetwork.org/edexchange/ node/232. Miehlbradt, Alexandra and Mary McVay. The 2006 ReaderImplementing Sustainable Private Sector Development: Striving for Tangible Results for the Poor. ILO, 2006. www.bdsknowledge.org/dyn/bds/ docs/497/PSDReader2006.pdf. . The 2005 Reader From BDS to Making Markets Work for the Poor. ILO, 2005. www.bdsknowledge.org/dyn/bds/docs/452/
CHF International. International Development Matters: Youth, Conict and Enterprise. Occasional Papers, vol. 2, February 2008. www.chnternational.org/node/21515. de Luca, Loretta. Business and Decent Work in Conict Zones: A Why? and How? Guide. ILO, 2003. www.ilo.org/public/english/employment/ crisis/download/busguide.pdf. Donor Committee for Enterprise Development. Supporting Business Environment Reforms: Practical Guidance for Development Agencies. 2008. http://rru. worldbank.org/documents/DonorGuidance.pdf. Ernst, Ulrich, et al. Enterprise Growth Initiatives: Strategic Directions and Options, Handbook Prepared for USAID, Bureau of Economic Growth, Agriculture and Trade. July 2004. www.dai.com/pdf/enterprise_ growth_initiatives_handbook.pdf. ILO. Livelihood and Employment Creation: Micro and Small Enterprise Promotion. ILOs recom-
218
Reader_2005_nal_LOW_RES.pdf. SEEP Network. Market Development in Crisisaffected Environments; Emerging Lessons for Achieving Pro-poor Economic Reconstruction. 2007. www. seepnetwork.org/content/library/detail/5659. . Minimum Standards for Economic Recovery after Crisis. Draft, January 2009. www.microlinks.org/ ev.php?ID=33368_201&ID2=DO_TOPIC. UN Development Programme (UNDP). Creating Value for All: Strategies for Doing Business with the Poor. July 2008. www.undp.org/gimlaunch/. UN Global Compact. Global Compact Business Guide for Conict Impact Assessment and Risk Management. www.unglobalcompact.org/issues/ conict_prevention/conict_impact_assessment_ and_risk_management.html. UNIDO, UNDP and the UN Global Compact. Partnerships for Small Enterprise Development. 2005. www.unido.org/index.php?id=o44527. US Agency for International Development (USAID). Conict-sensitive Approaches to Value Chain Development. microREPORT no. 101, May 2008. www.international-alert.org/publications/ pub.php?p=382. . A Synthesis of Practical Lessons from Value Chain Projects in Conict-affected Environments. microREPORT no. 105, May 2008. www.businessgrowthinitiative.org/KeyPracticeAreas/ Documents/Synthesis%20of%20Practical%20 Lessons%20from%20Value%20Chain%20 Projects%20in%20Conict-Affected%20Environments.pdf.
. Accelerating the Transition from Conict to Sustainable Growth: Value Chain Development in Conict-affected Environments. microREPORT no. 111, February 2008. www.microlinks.org/ev_ en.php?ID=23261_201&ID2=DO_TOPIC.
KEY WEBSITES
Action for Enterprise. www.actionforenterprise.org. Donor Committee for Enterprise Development. www.enterprise-development.org. microLINKS: Microenterprise Learning, Information and Knowledge Sharing. www.microlinks.org. SEEP Network Market Development Working Group. www.seepnetwork.org/section/programs_ workinggroups/action_research/working_groups/bds. USAID, Studies in Enterprise Development. https://www.businessgrowthinitiative.org/ ResourceCenter/Pages/Studies_in_Enterprise_ Development.aspx.
NOTES
1 ILO, Livelihood and Employment Creation: Business Development Services, ILOs recommended management and policy options for employment friendly reconstruction in Sri Lanka (2005), p. 6, www-ilo-mirror.cornell.edu/ public/english/region/asro/colombo/12businessdevelopme ntservicesA.htm. SEEP Network, Market Development in Crisis-affected Environments; Emerging Lessons for Achieving Pro-poor Economic Reconstruction (2007):, p. viii, www.seepnetwork.org/content/library/detail/5659. Ibid.
219
American Refugee Committee, The Stepped Approach for Improving Livelihoods (SAIL): An Implementation Manual for Refugee Camp & Post-conict Environment Programs, First edition, Glossary, www.arcrelief.org/site/DocServer/ IGP_Manual_Proof_3.pdf?docID=321. UNHCR, Handbook for Self-reliance (August 2005), p. 19, www.unhcr.org/publ/PUBL/44bf40cc2.html. European Commission, SME Denition, Enterprise and Industry, as of May 2003, http://ec.europa.eu/enterprise/ enterprise_policy/sme_denition/index_en.htm. US Small Business Administration, www.sba.gov. OECD, Small and Medium-sized Enterprises, Glossary of Statistical Terms, http://stats.oecd.org/glossary/detail. asp?ID=3123. USAID, The Value Chain Framework, USAID Brieng Paper (2008), p. 1, www.microlinks.org/ev_ en.php?ID=21629_201&ID2=DO_TOPIC. See note 5. See note 2, p. 2. ILO. The 2006 ReaderImplementing Sustainable Private Sector Development: Striving for Tangible Results for the Poor. (International Training Centre of the ILO, 2006): p. 66, www.bdsknowledge.org/dyn/bds/docs/497/ PSDReader2006.pdf. See note 2, p. 15. Ibid., p. 16. Ibid., p. 16. Ibid., p. 16. Ibid., p. viii. Ibid., p. 1. Ibid., p. viii. Ibid., p. viii. Ibid., p. 30. See Oxfam, Dening Objectives, Assessment Tools, pp. 2-4, www.oxfam.org.uk/resources/learning/humanitarian/ fast/assessment_tools.html#hea. Ibid., p. 2. Ibid., p. 3. Ibid., p. 3. Ibid., p. 4 See Oxfam, Assembling a Baseline for a Market Assessment, Assessment Tools, pp. 3-4, www.oxfam.org.uk/ resources/learning/humanitarian/fast/assessment_tools. html#hea. Ibid., p. 4.
29
Oxfam, Key Questions: Market Assessments, Assessment Tools, p. 1, www.oxfam.org.uk/resources/learning/ humanitarian/fast/assessment_tools.html#hea Ibid. Alexandra O. Miehlbradt, Guide to Market Assessment for BDS Program Design: A FIT Manual, ILO (April 2001), www.ilo.org/dyn/empent/docs/F111PUB1694_01/ PUB1694_01.pdf. Mike Albu and Alison Grifth, Mapping the Market: A Framework for Rural Enterprise Development Policy and Practice Practical Action (June 2005), p. 14, http:// practicalactionconsulting.org/?id=mapping_the_market. See Adina Saperstein and Ruth Campbell, Accelerating the Transition from Conict to Sustainable Growth: Value Chain Development in Conict-affected Environments, (USAID, May 2007), pp. 47-48, www.microlinks.org/ev02. php?ID=25267_201&ID2=DO_TOPIC. Interview with Carrie Berg, International Rescue Committee, January 30, 2009. See note 34. Steven Haggblade and Matthew Gamser, A Field Manual for Subsector Practitioners (USAID, November 1991), www.microlinks.org/ev02.php?ID=7351_201&ID2=DO_ TOPIC. See note 2, p. 2. Ibid. Ibid., p. 2. Ibid., p. 5. Ibid., pp. 30-31. See note 33. See also, note 2, pp. 1-2. See UNHCR, Putting Refugees in Business: Investing in Refugees Enterprise Development Activities (November 2002), www.unhcr.org/partners/PARTNERS/3fcb54dd2. pdf. Interview with Mitos Urgek, WEAVE, December 5, 2007. WEAVE, www.weave-women.org/tag/thailand. Fair Trade Federation, www.fairtradefederation.org. USAID, Conict-sensitive Approaches to Value Chain Development, microREPORT no. 101 (May 2008): p. 21, www. international-alert.org/publications/pub.php?p=382. Ibid. See USAID and the Louis Berger Group, Integrating Micro and Small Enterprises into Value Chains: Evidence from Guatemalan Horticulture and Handicrafts, microREPORT no. 78 (March 2007), www.microlinks.org/ ev_en.php?ID=17625_201&ID2=DO_TOPIC.
30 31
5 6
32
7 8
33
10 11 12
34 35 36
13 14 15 16 17 18 19 20 21 22
37 38 39 40 41 42 43
44 45 46 47
23 24 25 26 27
48 49
28
220
50 51
Interview with Terry Isert, American Refugee Committee, November 2007. American Refugee Committee, Value Chain Mapping for Lulu Nuts and Beekeeping (Value Chain Workshop for the Womens Refugee Commission Pilot Project in Uganda/Southern Sudan: Promoting Appropriate Livelihoods for Displaced Women and Adolescents, Gulu (northern) Uganda, June 23, 2007). Mary McVay, B.D.S. in Conict EnvironmentsNeglected Potential? The SEEP Network (October 2004), www. micronancegateway.org/les/22781_SEEP_BDS_in_ Conict.doc. See note 2, p. 3. SEEP Network, Minimum Standards for Economic Recovery after Crisis, Draft (January 2009): p. 37, www.microlinks. org/ev.php?ID=33368_201&ID2=DO_TOPIC. See note 2, p. 24. Ton De Klerk, Financing of Income Generation Activities in the Wake of Conict (Amsterdam, 2002): p. 5, www. networklearning.org/library/task,cat_view/gid,35/. See note 2, p. 14. BRAC, Bangladesh: Scaling Up a Program for the PoorestBRACs IGVGP Program; Scaling Up Poverty Reduction Analytical Case Study, www.worldbank.org (accessed October 2007). Karen Womens Organisation, www.karenwomen.org. Interview with Karri Goeldner, International Rescue Committee, November 2007. Ibid. Interview with Mitos Urgel, WEAVE, December 2007. See note 2, p. 12. Interview with Ken Weimar, KickStart, November 2007. Interview with Karri Goeldner, International Rescue Committee, November 2007.
52
53 54
55 56
57 58
59 60 61 62 63 64 65
221
Public-Private Partnerships
INTRODUCTION
Public-private partnerships (PPPs) are a mechanism for strengthening livelihoods programming for displaced groups. They can provide a foundation for sound, effective livelihood interventions with the potential to enable refugees and internally displaced persons (IDPs) to become less vulnerable, more selfsufcient and less dependent on humanitarian aid. PPPs can be formed in support of several of the livelihood interventions described in this handbook. These partnerships are mutually benecial, drawing upon the expertise and resources of a range of public and private sector organizations. Private sector partners can be involved through advocacy, funding, investment, technical support, employee volunteerism, in-kind donations or services. They can also implement or operate programs. There is growing interest in corporate social responsibility (CSR), as for-prot groups and companies see the benets of integrating responsible business practices, making charitable contributions to causes that are in line with their brand message and improving their corporate image and consumer appeal. There are, to date, few examples of public-private partnerships that strengthen the livelihoods of displaced populations. However, there is a growing trend in economic recovery and development initiatives to include the private sector in efforts to regain livelihoods disrupted by conict and disaster. Drawing upon the unique knowledge and capacities of multiple stakeholders in both the relief and humanitarian sectors can strengthen livelihood interventions.
222
PUBLIC-PRIVATE PARTNERSHIPS
KEY LEARNING POINTS

Prior to developing PPPs, a comprehensive assessment of needs, assistance gaps and local resources and skills must be conducted with all groups in the community in order to determine the best use of partner resources and leadership. Partnerships should be developed to take advantage of cross-sectoral, inter agency and community linkages, and draw upon local knowledge and technical expertise. The overall goal of developing strong livelihood program interventions should guide the development of public-private partnerships.
In a public-private partnership with Aveda and the Rainforest Allianse, small distillation units have been built in Nepal. The extracted essential oils fetch higher prices than the raw plants. Womens Refugee Commission/Lauren Heller
223
ESSENTIAL ELEMENTS
Denitions Public-private partnerships are alliances between the public sector and for-prot entities with the potential to enhance development impact through the combined strengths of multiple stakeholders.1 They can strengthen the impact of the public sector and harness the expertise and support of the private sector. This social enterprise is mutually benecial, enabling companies to make socially responsible investments or provide philanthropic support, share their industry experience and move toward a more holistic business model of corporate citizenship. PPPs include: Public sector actors, which include local and national governments, nongovernmental organizations (NGOs), United Nations (UN) agencies and civil society or community-based organizations (CBOs) that act in the public interest. Private sector actors, which include small, medium and large and multinational for-prot entities. Private sector agents suitable for partnerships include:2 subsistence or smallholder farmers, pastoralists, small-scale traders and microentrepreneurs; small and medium enterprises (SMEs) and local private operators, including input suppliers, agro-processors, transporters, traders and micronance institutions; large-scale operators, including local or international commodity buyers and sellers, multinational companies, international certication boards and commercial banks. Due diligence is the investigation of a person or organization conducted prior to engaging in a contract or an agreement. Memorandum of understanding (MOU) refers to a document that parties use to agree to the termssuch as roles and responsibilitiesof a partnership. Small and medium enterprises (SMEs) are small- and medium-sized businesses. In the development context, small businesses may have 10 to 20 employees and medium businesses may have up to 50 employees. Assuming a nondevelopment context, the European Commission denes small enterprises as those with fewer than 50 employees and medium enterprises as those with fewer than 250 employees.3 By contrast, the U.S. Small Business Administration denes a small business as one with fewer than 500 employees.4 The Organisation for Economic Co-operation and Development (OECD) denes microenterprises as having up to ten employees.5 Value chain analysis is a market analysis tool used to assess how products gain value as they pass through the entire range of activities necessary to bring a product to market.
224
Public-private partnerships that support livelihood interventions include the provision of job opportunities, funding and in-kind goods and support services, such as equipment, technology, communication infrastructure, supplies and technical support. Public-private partnerships can enhance production and local market development by drawing on private sector expertise in value chain development.
society organizations.8 Other initiatives are in place to bring humanitarian organizations and the private sector together to address complex global development needs. Examples of this include: The UN High Commissioner for Refugees (UNHCR) Council of Business Leaders,9 whose members Nike and Microsoft partnered with UNHCR to create the ninemillion.org campaign to provide children with better access to education, sports and technology.10 The Business Humanitarian Forum (BHF),11 a Swiss-based partnership between NGOs, UN agencies, state governments and companies to promote dialogue between leaders of humanitarian and economic development organizations and businesses. The World Economic Forums Humanitarian Relief Initiative,12 an initiative to increase the global impact of private sector engagement in humanitarian relief. Members include the UN Ofce for the Coordination of Humanitarian Affairs (OCHA), the World Food Programme (WFP), the World Health Organization (WHO), the International Federation of Red Cross and Red Crescent Societies (IFRC) and companies involved in health care, transportation, logistics, engineering and construction. The United Nations Development Programme (UNDP) developed the Growing Inclusive Markets Initiative13 in 2006 to help development practitioners, policymakers and the business community support value-added business models that support local knowledge and business development that will provide livelihood opportunities for communities living in poverty. The partners of this multi-stakeholder network include the UN Global Compact, the World Economic Forum, the United States Agency for International Development (USAID), NGOs, universities and international business organizations, such as the International Business Leaders Forum.14
CORPORATE SOCIAL RESPONSIBILITY AND THE ROLE OF COMPANIES

There has been a global trend in corporate citizenship and corporate social responsibility toward offsetting the impacts of unsustainable business practices and integrating more sustainable business practices. Many businesses committed to CSR values are choosing not just to invest in philanthropic endeavors, but also to ensure that their core business strategies and operations are responsible. Simply donating funds is not enough to address the long term humanitarian challenges faced by displaced people in their pursuit of sustainable livelihoods and decreased dependency on aid. Economic development must be rooted in active engagement by the private sector. Globally, the public sector is working with companies in strategic partnerships for humanitarian work. The United Nations developed the UN Global Compact in 2000 as a call to action to businesses to partner with the UN and other global stakeholders to create a more sustainable and inclusive marketplace.6 Such a commitment creates value for both the business community and society, and is more than a mere damage control public relations strategy.7 The UN Global Compact has more than 4,000 stakeholders in 116 countries, including companies, state governments and civil
225
The Coalition for Adolescent Girls, a partnership between the UN Foundation, Nike Foundation, six UN agencies and more than 30 leading international organizations. The Coalition promotes governments, civil society and the private sector investing in girls education, economic opportunity, health and protection and ending child marriage as a way to end poverty.15 The Adolescent Girls Initiative, a partnership between the World Bank and the Nike Foundation, which was formed to benet adolescent girls in selected conict, post-conict and low-income countries. The Initiative aims to raise funds from government and private sector sources for projects helping adolescent girls make a successful transition into the labor force in Liberia, Afghanistan, Nepal, Rwanda, South Sudan and Togo.16 There is no doubt that the private sector can bring signicant value to humanitarian work. However, concerns have arisen about the role of private companies. Some humanitarian actors are wary of working with the private sector due to the possibility that fundamental principles of neutrality and protection could become weakened because companies may not adhere to or uphold them. Furthermore, there is concern that private actors without relevant expertise could gain control or oversight of relief activities, and/or that companies could gain contracts at the expense of humanitarian agencies.17
Use the private sector as a channel for expanding into new markets. Formalize such partnerships through agreements and contracts that establish mutual understanding and respective roles and responsibilities. Develop long term, sustainable investment that benets both the private sector and displaced participants.
PUBLIC-PRIVATE PARTNERSHIPS IN LIVELIHOODS PROGRAMMING

Helping Participants Integrate into the Community Successful businesses are an integral part of communities. They can potentially employ both local and displaced populations and/or develop income-generating opportunities for both groups. Providing employment opportunities for all members within the host community can foster economic independence and alleviate competition over scarce shared resources. Reconstruction and Recovery Efforts In post-conict and post-natural disaster recovery, PPPs can be effective in managing private sector investment in infrastructure by drawing together the expertise and technical capacity of the local community, government and NGOs. Although some partnerships may be temporary rather than long term alliances for employment opportunities, the short term benets can result in sustainable livelihood opportunities. If, for example, a company makes a one-time philanthropic donation to rebuild a market following a natural disaster, this investment in livelihoods activity may have a longer-term economic impact on the community than an ongoing business partnership for sourcing materials.
KEY OBJECTIVES OF PUBLIC-PRIVATE PARTNERSHIPS

Utilize both public and private sector resources to increase livelihood opportunities for those displaced by conict in a way that mutually benets a private entity, a humanitarian entity, the displaced and, ideally, the surrounding community.
226
Holistic Programming Public-private partnerships should be created to make livelihood interventionssuch as apprenticeships, job placement, skills training and enterprise developmentmore effective and sustainable. Gender-based Considerations Public sector partners will ultimately have the responsibility for ensuring the protection of program participants, and therefore must establish mechanisms for monitoring and upholding the protection of women and vulnerable participants in any public-private partnership-led livelihood intervention. This can include requiring private sector partners to sign codes of conduct when directly interacting with program participants and establishing provisions to protect participants from gender-based violence, discrimination or vulnerabilities that could arise as a result of their participating in an intervention, which might disrupt established cultural or social norms. Further, it should be strongly recommended that women and men receive the same wages for similar occupations when job creation is involved. Partnerships with local CBOs, grassroots womens groups and private sector entities can also help support female participants by sharing livelihood strategies, providing mentorship, strengthening their coping mechanisms and coordinating child care needs with other mothers and caregivers who may be able to take turns caring for the children while they attend training or work. Inclusion of All Displaced Groups, Including Those Most Vulnerable Public-private partnerships should seek to benet, and not exclude, the most vulnerable
displaced people, including women, youth, returnees, older people, persons with disabilities, ex-combatants, separated youth and persons living with infectious diseases such as HIV/AIDS and tuberculosis. Develop an Exit Strategy Partners will need to develop an exit strategy so that participants and community members can manage the business partnership independently to ensure its sustainability. PUBLIC-PRIVATE PARTNERSHIPS PROVIDE AN ENABLING ENVIRONMENT Access to Markets and Working Infrastructure If job creation is a priority for the targeted displaced population, PPPs can provide access to employment in local, regional or international markets. If the objective of the partnership is to enhance, protect or repair livelihood programs currently in place, private sector partners should link participants to physical, nancial or technological assets that will strengthen the impact of interventions. For example, a PPP may involve road repair, computer donations or training on the use of high-tech irrigation equipment that will help participants to better access and/or compete in larger markets. Labor Standards All stakeholders in livelihood partnerships, particularly companies employing or working with program participants, should be trained in safe and appropriate labor standards, including the labor rights for youth below 18 years of age. If these are not already in place, private sector partners must be willing to work with other stakeholders to develop a code of conduct and facilitate compliance with local legal standards. Assistance may be provided by the International Labour Organization18 or another neutral labor
227
expert. Employees must be made aware of their rights, proper workplace conditions and procedures for hiring, ring, reporting injuries and making complaints. Relative Security and Stability The private sector is rarely willing to go into areas of conict or instability, fearing insecurity of personnel and loss of assets. If there is high risk, particularly in societies without insurance, private sector actors will be reluctant to invest signicant resources. Local private sector partners already operating within the environment may have fewer security concerns and should be encouraged to support livelihood interventions as a way to expand their economic interests. Functioning Law Enforcement Private sector partners are more likely to operate in an environment with functioning law enforcement that can provide security, which can ease the ow of goods. Seeking partnerships with local government can be mutually benecial. Law enforcement can be improved and local economic development can benet the municipality.
The example of post-conict industry in Liberia demonstrates an opportunity for a mutually benecial public-private partnership. To improve livelihood opportunities, NGOs in Liberia should partner with the private sector to develop vocational training so that participants can meet the skills demands in the re-established industries: Organizations need to think bigger, including about how to expand employment opportunities on a large scale and address both sides of the supply and demand equation. That is, organizations need to help revitalize small and mediumsized enterprises, thereby expanding employment options and creating demand for employment, as well as liaise with and support the expanding business sector by providing targeted training to increase labor supply.20 Dialogue among the public and private sectors can help utilize the comparative advantages and resources that each can provide in partnership.
CASE STUDY Business Competition in Liberia Creates Livelihood Opportunities19
In preconict Liberia, LAMCO, an iron ore mine, had been the countrys largest private employer. Fifteen years after it had closed due to the conict, it made plans to reopen as Mittal Steel. In a similar circumstance, a rubber processing plant, owned by a Chinese company, was planning to open to compete with rival Firestone. The new factories require numerous staff, including those with experience in accounting, manufacturing and logistics. Further, the locations of the factories outside the capital, Monrovia, create market opportunities for support services, such as transportation and local markets.
228
PRELIMINARY STEPS
PUBLIC-PRIVATE PARTNERSHIPS: POTENTIAL BENEFITS21 NGOs
Added resources and value that increase reach to participants Program enhancementnew programs, expansion or innovation in existing programs Contacts and opportunities with business community and new/ alternative sources of funding Increased capacity to access international markets for participant programming Private sector business and management expertise Sustainable programming through linkages with long term business investment
Enterprises (SMEs)
Increased employment and wealth creation by local rms Acceleration of knowledge transfer and upgraded technology; enhanced skills, standards and capacities Access to new domestic and/or foreign markets
Large Firms
Reduced procurement, production and distribution costs Improved productivity
Local Communities
Stimulation of economic activities and enhanced local economic development Increased employment and production; potential for reduced conict in the community
Increased opportunities for corporate social responsibility combined with protability; brand marketing appeal Enhanced local reputation and local licensing to operate; improved integration into new overseas markets Increased ability to reach consumers Reduction of foreign exchange needs through import substitution
Long-term increase in local or regional competitiveness
Attraction of additional foreign direct investment
Added local purchasing power
More stable relationships to buyer or producer organizations More diversied client and market structures
Access to more affordable, reliable or better quality products and services Increased participation of largescale companies in local business and community development
Reduction of market distortions typically resulting from humanitarian aid
More stable relationships to buyer or producer organizations
Increase in exibility in making design and production changes due to proximity of local suppliers Compliance with government local content requirements, if marketing in-country
Balance of payment benets when products are exported and/ or substituted for imports Development of local service providers catering to new markets
229
CASE STUDY TNT Partners with the World Food Programme on Humanitarian Logistics Initiatives22
In 2002, TPGsubsequently rebranded as TNTa Netherlands-based multinational logistics company, sought a partnership with the World Food Programme (WFP) so it could improve its corporate citizenship by assisting in humanitarian logistics needs. TNT agreed to donate 5 million per year in services and funds to support the Moving the World partnership with WFP23 and launch initiatives around school feeding, private sector fundraising, emergency response, a joint logistics supply chain and promotion of greater transparency and accountability. In 62 countries, 161,000 TNT employees raised fundswith TNT matching up to 500,000to feed school children. TNT employee teams were deployed for three months to Cambodia, Nicaragua, Tanzania and Gambia to conduct needs assessments with WFP country staff and see where TNT services would most usefully complement WFP activities. TNT helped organize and facilitate the Fleet Forum, an initiative involving more than 40 NGOs and UN agencies to improve vehicle maintenance procedures.24 TNT also helped adapt and simplify eet management software for developing countries. TNT has implemented an aviation training program for WFP air operators, and the companys freight services have provided equipment that has aided faster food delivery. The company has shared some business expertise by assessing WFPs procedures and making suggestions to unify systems and standardize operations. While WFP had never before partnered with the private sector and TNT had never worked with a humanitarian organization, the working relationship was strong. Yet differences arose in decisionmaking processes, which could have political implications for WFP that TNT had not before experienced. The sites and strategies of logistical operations were distinct; TNT was not accustomed to working in conict- and crisis-affected areas, while WFPs approach involves measured risk in saving lives rather than adherence to the nancial bottom line, which guides TNTs business. This realization caused each organization to undertake separate activities. The project has been fruitful for both partners: TNT beneted from the partnership by receiving increased exposure and recognition for global humanitarian work and corporate social responsibility; and WFPs capacity and technical expertise were enhanced, preparing the agency for future PPPs.
230
IDENTIFYING POTENTIAL PRIVATE PARTNERS

Identify private sector entities in the area. Chambers of commerce or government agencies may be instrumental in identifying suitable companies. Try to nd out: Are any businesses that have been closed reestablishing themselves? Is there any unoccupied infrastructure, such as buildings, that could attract new investors? Are new businesses opening? What are the factors and opportunities that would attract new businesses? Are there are any Internet sources or directories providing a list of locally operating companies? Are there functioning trade associations, labor organizations and government agencies familiar with local companies? Are there resources or raw materials being cultivated/produced by potential participants that could be marketed to local or regional business interests?
equipment and technical assistance may be a mutually benecial investment, providing local tax revenue on mobile and telephone calls and Internet usage. In settings of post-conict and post-disaster return, public entities can partner with telecoms to assist with reconstruction or rebuilding efforts. Telecom services strongly benet local economies, with improved communications providing more efcient access to markets, transfer of remittances and transnational enterprise development. Construction/Infrastructure Priority should be given to subcontracting local construction companies, as opposed to foreign rms, in order to ensure that revenue and wages remain in the local economy. Local knowledge should be utilized, together with locally produced building materials. Where necessary, partnerships with NGOs should provide capacity building for effective local water treatment, sanitation, sewage and other services. If there are large construction needs within a targeted community, several types of partnerships could be developed. Partnerships with the construction industry can be geared toward training and apprenticeships for displaced people in carpentry, electrical work or roong, as well as building needed infrastructure in refugee/IDP camps and settlements, for example, sanitation and water treatment facilities with donated equipment, technical assistance and training. Natural Resources Oil, mining and agriculture can provide jobs for displaced and local communities. Partners should be careful not to cause further displacement due to the development of natural resources or infrastructure. To prevent any
EXAMPLES OF POTENTIAL COMPANIES AND CONSIDERATIONS FOR EACH25 Telecom Companies Partnerships involving telecoms are most feasible in urban areas or near well-established refugee and internally displaced person (IDP) communities. Since displaced populations are considered temporary, companies may be unwilling to invest substantially in infrastructure. However, companies may consider this a worthwhile investment in protracted situations where refugees remain displaced for decades. Partnerships between local government and telecom companies providing funding,
231
inadvertent harm, assessments and consultation with local groups, ofcials and NGOs are recommended. Related concerns are addressed by the Inter agency Standing Committees (IASC) Guidance Note on Early Recovery.26 Conict zones are often located in areas with valuable natural resources sought out by armed groups. Partnerships with local and international companies, as well as government agencies, should be carefully planned to prevent corruption, poor labor conditions and trafcking. It is important to view operations through an analysis of potential conict economies. Local, Regional and International Companies Companies can infuse funds into the local economy and provide needed jobs. Transnational diaspora networks, along with remittance funds, can have a role in local business development. Transnational private sector groups, including hometown associations, can work with local organizations, NGOs and government agencies to provide employment opportunities and strengthen the local economy. Linkages can be established between local companies and humanitarian agencies that need certain goods to assist participants of aid. Such arrangements can also provide needed employment opportunities, benet the local economy and reduce transportation costs. In addition, private sector partners may improve their credibility as a result of their activities to promote corporate social responsibility.
OTHER CONSIDERATIONS Legal aspects: Partnerships must ensure that local enterprises are legally established and any required permits are obtained. It must be claried whether displaced people are legally allowed to work under host government laws or regulations. (See Working with Host Governments chapter.) Rural and urban considerations: Livelihood intervention partners must address participants access to employment opportunity and whether they are dispersed or concentrated in urban and rural areas. Urban residents may be able to transport themselves to work or training. Individuals in rural areas may require coordination for transportation if all of the work is done in one location. Proximity to host/local communities: Partnerships should prioritize development that can benet both displaced and local communities. If the partnership requires signicant infrastructure and construction, it may be wise to develop programs near host communities. Refugee and IDP livelihood program participants may integrate in host communities long term, so telecom and other infrastructure will be a long term resource.
RELATIONS BETWEEN THE PRIVATE SECTOR AND THE LOCAL COMMUNITY What is the relationship between private companies and local communities? Do already existing regional and international businesses employ displaced people? If there is mistrust between stakeholders and participants and poor relations have existed in the past, there may be very little possibility for a successful partnership. Public-private partnerships tend not to be sustainable where relations have traditionally been poor.
232
DETERMINING THE SUITABILITY OF POTENTIAL PRIVATE SECTOR PARTNERS Before approaching a potential private sector partner, research the business, try to understand their needs and perspectives and develop a tentative proposal of how they may participate in the publicprivate partnership. Gathering information for a partnership proposal entails asking: What kind of workforce and how many employees are needed? What skill sets are needed? What are their hiring strategies/processes? Can the NGO add value by facilitating, hiring or preparing the workforce? If the NGO offers training, can the company provide training space or materials? What accommodations can be made for vulnerable populations? Can members of these groups fulll certain roles that do not place inordinate burdens on them? What are the logistics needs for the workforce? Will it need transportation and other services? Is the company willing to provide apprenticeships? A suggested program might include apprentices working for three to six months to develop appropriate skill sets for the industry. A stipend could be provided by the NGO, with the company agreeing to hire a certain percentage of apprentices long term. If the potential private sector partner is to provide a servicesuch as micronanceis it willing to do so at a favorable rate? How long would it provide services at a favorable rate to allow livelihood opportunities to develop?
SELECTING AND APPROACHING COMPANIES FOR PUBLIC-PRIVATE PARTNERSHIPS

PROPOSING A PARTNERSHIP Public sector entities seeking private sector partnerships should prepare letters of interest, conduct initial consultations or outreach and make a formal proposal. Organizations may have to work to convince potential private sector partners about the benets they may receive from such a partnership, such as investment potential, positive public relations exposure and increased visibility that can expand their business relationships. At the same time, they must have a commitment to the relief and development goals that PPPs can provide for livelihood interventions. It is important to establish transparency, trust and agreement on expectations and responsibilities. Topics to be addressed should include:27 the purpose and goals of the partnership; problems and issues the partnership will attempt to resolve that could not otherwise be achieved by individual actors; the estimated number of participants; the economic and social benets for both private and public sector stakeholders; undertaking a cost-benet analysis to determine whether the benets will outweigh both the opportunity and nancial costs of developing the partnership; the current legal and tax status of all stakeholders or potential stakeholders; the participants current level of skills and technical qualications; estimated contributions; duration of the proposed partnership.
233
It is critical for the public sector stakeholder to provide a realistic understanding of the role and mandate of NGOs, their organizational structure and governance and their goals and expectations. Developing livelihood interventionsin rural and urban host communities, in both refugee and IDP settingscan be challenging and take longer than planned. In conict or post-conict areas, potential private sector partners must understand any security concerns or liabilities. The potential private sector partner must also be made to understand that while humanitarian aid is a short term response, development is a longerterm commitment. The partnership must account for the eventual exit of the public sector partner unless a government agencyand possibly that of the private sector partner. The need for exit strategy development must be made clear.
what kind of results their stakeholders expect; which problems will be costly and which ones will be minor. Decision-making It is important to ask: Who has decision-making power? If it is a multinational company, do local actors need to consult with headquarters before making decisions? How do those responsible make decisionson the basis of market share, supply chain, regulatory policy, workplace development, research and development and/or public relations? Budgeting For a private sector agent, the costs incurred by operating in unstable areas with unreliable resources can be large. Thorough feasibility studies are vital. Partners unaccustomed to working in unstable areas should understand that: It is impossible to plan for every possible contingency. There should be exibility to allow for changes in local conditions. There may be cost overruns due to project delays. Increased staff may be required. Stakeholder Consultations
UNDERSTANDING PRIVATE SECTOR DYNAMICS The dynamics of private sector actors can be quite different from NGOs or government agencies due to their governance structures and the focus of their work. It is therefore important to understand a companys dynamics in order to determine partnership feasibility, mitigate potential problems and develop monitoring and evaluation procedures. Considerations include:28 Accountability Since companies measure success by nancial gains and losses, if projects are unsuccessful or take longer than expected, the organizational and nancial stakes may be different for the private sector. Find out: whether the private sector agent is nancially accountable; how often they assess and report results;
Numerous stakeholder consultations are needed to determine mutual interest and each partys role, and whether organizations and their agents are prepared to commit to the partnership process. Target participants should be included at every stage of stakeholder consultations. Preconditions for successful partnerships include:29
234
Common Cause Is the issue being addressed important to all stakeholders? Is a PPP an advantageous way to treat the issue? Which actors have shared mutual interests? Belief in Partnerships as a Strategy Do potential stakeholders believe that the partnership will have some additional benet beyond the planned intervention? What are the benets for each stakeholder? What can the partnership provide that stakeholders working alone could not? Presence of a Convener Is one stakeholder willing to assume responsibility for calling other stakeholders to the table? Are other stakeholders willing to grant this role and adhere to the conveners authority? If decisions are to be made by a stakeholders committee, is each stakeholder willing to nominate a representative? Principled Behavior Are long term interests and practices consistent among stakeholders? Evidence of operational practices can be found in past commitments to human rights, working conditions, environmental protection, business sustainability and/or community engagement. Any potential private sector partner that appears to be supercially engaged on the basis of public relations or brand image should be treated with caution, as its commitment may be short-lived. Provision of Resources Are nancial, in-kind and stafng resources available, and is each stakeholder willing and able to commit them?
Willingness to Explore Opportunities Is each stakeholder willing to invest in the process, take risks and extend itself in ways that might not be necessary or feasible when operating independently? How much risk would be assumed by each stakeholder? Is that acceptable to other stakeholders?
SCREENING POTENTIAL PARTNERS Due Diligence. It is in the interest of all partners to protect themselves and the targeted participants by conducting a due diligence investigation of a potential partner. This entails an assessment of their business principles and practices, past nancial performance, reputation and future plans. Resources available for investigation include: surveys with local populations or previous employees of the private sector agent; news reports; nancial reports; information from corporate watchdog organizations; business-oriented resources, such as global credit reporting agencies. The scale of investigation depends on the scale of the partnershiptoo much can add to the costs of developing a small partnership, while a signicant amount may be required for large-scale partnerships. Criteria can also be found through: The World Banks Outreach Group30 The UN Global Compacts Ten Principles31 relating to human rights, labor and the environment To determine the integrity of prospective partners, it is important to investigate:
235
corporate image social responsibility environmental accountability nancial soundness Corporate Image What is the companys public image? Have there been any tensions between the company and communities? Have there been any negative media reports about the company? If so, how has the company dealt with negative publicity? Are there any pending lawsuits against the company? Is the companys sole motivation for developing the partnership improving its public relations or are there business interests as well? Is the company looking for procurement opportunities from the NGO? Is the company willing to engage in a transparent manner without expecting an exclusive relationship or barring of competitors? Social Responsibility Is the company involved in the manufacture, distribution or sale of weapons or narcotics? Does the company have a reputation for corporate social responsibility? Has the company used good practices proactively or reactively, as a result of problems? Does the company have a code of conduct and, if not, is it willing to develop one? Does the company have enforced labor policies prohibiting child or forced labor? Does the company have enforced nondiscrimination policies governing the hiring, promotion and wages of vulnerable populations?
Does the company accept unions or attempts to organize unions? Does the company have a health and safety action plan for workers, including the handling of hazardous materials? Environmental Accountability Does the company collect and evaluate adequate and timely information regarding the environmental, health and safety impacts of its activities? How are these impacts mitigated? Are there mechanisms for reporting them to the appropriate authorities? Is this information available to employees and the public? Does the company continually seek to improve corporate environmental performance and reduce negative impacts? Is the company certied for good practices by the International Organization for Standardization (ISO),32 an international standard-setting organization? Financial Soundness Is the company publicly traded? Has the company been in business for several years? Is the company transparent? Does it publish audited nancial statements and annual reports?
PROJECT FEASIBILITY A complete feasibility study is critical to a successful partnership. Reliable projections to which all partners can refer can partially mitigate the impact of subsequent cost surges. The accuracy of the feasibility study is important, given private sector commitment to stringent standards of nancial accountability.
236
Market Assessment Develop practical tools for rapid market assessments that identify local needs, capacities and socioeconomic, political and environmental trends that could impact a livelihoods-based public-private partnership. It may be useful to determine the potential impact of marketing the private sector partners corporate social responsibility, which is especially valuable in an international market. Consider the potential and expected economic impact for both the private sector partner and program participants. A market assessment is less necessary if the private sector partner is already present in the communitywith existing demand for labor and servicesand more necessary if the public sector partner is attempting to identify potential partners. Technical Assessment What tools can partners share to build capacity? Can they offer: impact assessments? tools, equipment and other inputs (e.g., capital, land, seeds, fertilizer, water)? training or technical assistance for tools, distribution and marketing? encouragement of supportive public policy by local government? distribution/access to local, national and international markets? Does each stakeholder have the capacity to meet agreed-upon responsibilities? Value Chain Analysis Public-private partnerships applying value chain analysis can benet both participants and the private sector. Partnerships can use value chains in various livelihood interventions to assess how
to add value to products and strengthen linkages with local, national, regional and international markets. A sample value chain map would include various components, such as: Inputs (tools, equipment, labor, capital, training and technical assistance) Production (using inputs to produce or process goods to add value) Transportation/Distribution (transporting goods to buyers or distributors) Trade/Market Access (getting nished product(s) to local, national, regional and international end markets) By mapping out the value chain of a particular good or service, using the value chain links above, the public sector partner can determine areas where they can best support the private sector partner. Practitioners may nd that they can play a key role in each stage in the value chain. Questions to consider may include: Inputs: Do they need trained labor to work on the input level? Production: Do they need trained labor to work on the production level? Transportation/Distribution: Does the private sector partner contract with other agencies to transport the goods and, if so, can the public sector partner compete for that contracted service by training participants to meet that need? Trade/Market Access: Can the public sector partner be the liaison between the private sector partner and buyers, companies and organizations in the international market? There are several additional issues to be considered in this value chain analysis: Can partnerships contribute to the development
237
of small and medium enterprises (SMEs) in other capacities to support the partnership? How does conict affect the transportation, delivery and import of needed materials? What can be done to attempt to overcome this? If applicable, how has each actor in the value chain been affected by conict? If applicable, are there any barriers to entering international markets? Are there considerations regarding: international certications of sustainability and fair trade? tariffs? shipping costs? international customs charges? When developing a new good or service, the public sector partner will need to identify the roles and responsibilities of each partner at every part of the value chain. (See Enterprise Development chapter for more information on value chain analysis.) Tariffs Are there any tariffs that may obstruct progress? If local government is a stakeholder in the livelihoods partnership, perhaps prohibitive tariffs could be reduced. Determine with whom to discuss potential tariffs and regulations. Determine whether tariffs are a concern for partnership formation. Program Financing Will the partnership benet all stakeholders? Are the nancing mechanisms of each stakeholder compatible? If not, can difculties be avoided?
Would creating the partnership create more obstacles than solutions?
PARTNERSHIP ROLES The role of the public sector partner in livelihood intervention partnerships should support target participants by promoting: Support of participant enterprises that will help to meet private sector demand. Linkages should be made between participant enterprises and larger value chains. An example of this would be a linkage between local agricultural production and larger-scale producers. Facilitation of partnership agreements between displaced participants and the private sector, whereby large-scale producers buy crops grown or goods produced by participants. Increased local production with the support of training, technical assistance and the provision of inputs, such as improved irrigation, tools or seeds. Incorporation of both vulnerable populations and the local community. Education and skills training. Job placementmatching the skills and services of participants with the needs of the partner company or other enterprises. Labor rights, including training participants in standards and developing codes of conduct with businesses. Evaluation and monitoring of labor standards, value chains and partnerships. Protection of the workforce while in transit and working, provided by the private sector partner. Respect for cultural considerations, as well as compliance with company guidelines regarding values and requirements. Development of new markets and services based on livelihoods partnership program.
238
Establishment of cooperatives for the negotiation of price guarantees, service provisions and/or land access. Formalizing price negotiations can allow individual farmers or producers to group together for negotiating power. Cooperatives can convince companies that they will have a larger supply from which their processing agents can meet quotas. The role of the private sector partner can be as an implementer or organizer, and should include providing nancial or in-kind support, technical support and expertise, and capacity building. Where appropriate and possible, the for-prot partner can provide linkages with other companiesnational or internationaland markets that can play a role in strengthening value chains and economic growth. The considerations above are intended to supplement feasibility studies and assessments typically performed for any intervention. In the case of PPPs, special consideration must be given to each partners roles and capacities and potential program impact. Private sector engagement can require signicant resources that might not be available.
CASE STUDY Effective Feasibility Studies in Conict Areas33
In 2002, the Business Humanitarian Forum (BHF), an organization promoting humanitarian and business cooperation in solving development problems,34 partnered with the European Generic Medicines Association (EGA) and the Afghanistan ofce of UNDP to establish a locally owned pharmaceutical plant in Kabul. Forty locals were trained to produce much-needed generic medicines for Afghans.35 However, the original feasibility study was not thorough enough to anticipate and factor in some subsequent cost increases. When equipment donated by a U.S.-based member of EGA arrived in Kabul, startup was delayed by skilled labor and electricity shortages. The costs of bringing in outside skilled labor and maintaining a generator had also not been anticipated. This example demonstrates the importance of undertaking a complete feasibility study.
239
DESIGN
In the design stage, all of the partners should understand their roles and responsibilities, partnership objectives and goals, and processes necessary to implement the intervention. The design stage involves developing: agreements and contracts methods of nancing organizational structure of the partnership benchmarks
AGREEMENTS AND CONTRACTS

Memorandum of Understanding. Developing an MOU to which all stakeholders contribute and agree is a critical step in the design process. An MOU can help build trust and agreement between partners, and it serves as a reference document for all stakeholders throughout the partnership. An MOU should include all agreed-upon terms, the roles and responsibilities of each stakeholder and detailed budget projections supported by wellresearched feasibility studies. A sample contract outline might include:36 I. II. III. IV. V. VI. VII. IX. X. XI. XII. Program goal(s) Contracting parties Contract duration and parameters Obligations of the investor(s) Obligations of the skills provider(s) Obligations of the participants Property title Termination Force majeure (freedom from liability in extraordinary circumstances) Dispute resolution Amendments
VIII. Nonliability
In addition to a general contract, if there are multiple partners, separate agreements are needed for each partner, specifying the number of participants, project location(s) or any modications to partner roles.
240
CASE STUDY Youth Apprenticeships in Liberia37
As part of its Countering Youth and Child Labor through Education (CYCLE) program,38 the International Rescue Committee (IRC) has developed partnerships with various small and medium enterprises to allow youth to learn job skills through short term apprenticeships. Trainers are identied through personal skills, tools, willingness to accept apprentices, enthusiasm and motivation to teach and their potential for eventual employment of apprentices. Compensation is provided by the IRC to the trainers, but additional incentives such as publicity, tax incentives, government certications, future apprenticeships and employment placement are encouraged. MOUs are signed between individual trainers, the implementing organization, guardians and the current employers of the youth. The agreement includes all particulars of each apprenticeship, such as training period, time, costs for tools and materials, travel, meals and other allowances, incentives, accidental costs, supervision, monitoring, certication, possible employment and any other support. It also states under which conditions a partner would be justied in withdrawing from the agreement.
The CYCLE program in Liberia offers a good example of the conditions that can be covered in an MOU. However, it must be noted that apprenticeships must be approached with caution, as sometimes skilled workers earn money by training apprentices when they themselves are unable to make a living in their trade. It is imperative to assess labor market demand for certain occupations in advance, so that apprentices are able to use their new skills once trained. A failure to ensure that apprenticeships are suited to realistic labor market needs will ultimately set participants up for failure. (See Training and Placement Programs chapter for more information about apprenticeships.)
METHODS OF FINANCING
Cost Share/Matching vs. Resource Leveraging The general guideline would be to expect an equal contribution from the private sector. This can be justied because the private sector is being engaged for its resources and should be viewing this contribution as an investment. The proposed contributions of each partner can be either nancial or in-kind, or both. Pooled vs. Parallel Financing Parallel nancing, in which each partner maintains independent nancing, is the best option for most partnerships, as it allows all partners to operate with their own funding mechanisms. Pooled nancing might be appropriate if an alliance governance structure is established. An alliance governance structure may make joint program decisions or informally direct policies and programs.39
241
MODELS
Certication Standards Model Partnerships seeking certications or aiming to meet international standards might consider having an intermediary managing committee that can facilitate communication with the international board or organization, and ensure that all of the participants adhere to the minimum standards of quality and consistency. The intermediary committee might be composed of participants and other partner stakeholders that self-audit their production processes in addition to submitting them to the independent agency for approval. This helps ensure adherence to standards. Contracting Labor with National or International Companies Public-private partnerships with national companies are more feasible than with multinational corporations. National companies may be able to operate in an insecure environment, and they are also more accustomed to the working and cultural considerations specic to a particular country and/or in a displacement context. While national companies often have less capital for investment than multinational companies, they build the local, regional and national economy. Most importantly, far more sustainable livelihood opportunities result from national companies, particularly in return and IDP contexts. Partnerships Involving Multinational Corporations If any multinational corporations are involved in a public-private partnership, the level of due diligence required is much higher, as the companies have less control over the contracted suppliers.
242
CASE STUDY Continuous Improvement in the Central American Workplace Alliance40
Development Alternatives Inc. (DAI), a U.S. development consulting company, is overseeing a multi stakeholder alliance to implement the Continuous Improvement in the Central American Workplace (CIMCAW) Alliance. As part of its Global Development Alliance initiative,41 the United States Agency for International Development (USAID) is providing nancial support, along with multinational apparel companies, such as Gap, Timberland and Wal-Mart. The main objective is to enhance labor standards and build capacity in Central American apparel and textile factories. DAI is working with local governments, unions and international and local NGOs that are leaders in workplace training to develop improved, sustainable workplace conditions. Stakeholders are providing training for factory workers and managers in national and international labor standards. CIMCAW mechanisms are implemented at every level of the supply chain, with training for workers to understand their rights and complaint procedures and for managers to improve management systems and productivity. The Alliance strengthens the capacity for independent groups and government ofcials to monitor labor standards currently done by the multinational corporations, signicantly reducing labor monitoring costs and providing more transparency.
Ad Hoc Agreements with More Than One Private Sector Agent Some organizations arrange partnerships with multiple private sector actors with the intent of dispersing the participants among various partners. Such an arrangement can be suitable if target participants have diverse skill sets or interests that do not match the need of a single private sector partner.
243
CASE STUDY YES Kenya42
The Youth Employment Summit (YES) Kenya entered into a partnership with the Kenyan Ministry of Youth Affairs and Sports and the Ministry of Trade, along with the UN Development Programme (UNDP) and various banking and nancial institutions, to encourage sustainable livelihoods for youth through microenterprise. Meant to address unemployment among youth, this partnership resulted in the Youth Enterprise Development Fund. The Ministry of Youth Affairs and Sports was established following the 2006 Youth Employment Summit, hosted by both YES Kenya and the Government of Kenya. With the support of the Youth Ministry, YES Kenya had conceived the Youth Enterprise Development Fund, and together both YES Kenya and the Youth Ministry approached the Ministry of Tradewhich had a rich database of existing enterprises that already had partnerships with UNDP, the World Bank and other agenciesabout introducing a youth component as a targeted group for investment. YES Kenya researched potential nancial institutions and prepared letters of interest describing the Fund initiative. Through strategy meetings, clear objectives and investment ideas provided by youth, YES Kenya and the Youth Ministry proposed the partnership to the private sector. Following YES Kenyas initial vetting, the selection process for willing institutions was based on the interest rate these institutions would charge to the participants who applied for the loans; those that had higher interest rates were left out. The proposal to the private sector was strengthened by the credibility the Youth Ministry brought to the partnership, given the governments capacity to implement large-scale projects. UNDP offered capacity building training and an initiative to encourage youth of an appropriate age who wished to start microenterprises. YES Kenya also provided capacity building so that the participating youth would be prepared for their nancial responsibilities, and the Youth Ministry helped negotiate with the nancial partners, seek more nancial support for the Fund and provide a legislative mechanism through which the Fund could operate. While the Fund was originally an initiative administered and implemented by the Ministry of Youth Affairs and Sports, the Fund is now a separate, state-sponsored organization.
244
BENCHMARKS
Benchmarks should be developed between all partners to clarify respective responsibilities to stakeholders and to ensure sustainability for the livelihood opportunities of the target participants. Since the goal of many partnerships is to build sustainable business relationships between companies and participants, benchmarks should be focused on capacity building or milestones rather than indicators or outputs. Potential Benchmarks Increasing Market Access If participants are offering services other than labor, they should be able to have access to more than one private sector partner. Increasing buyers distributes risk and increases stability. This can promote international linkages and certication standards, and attract new business. Capacity Building to Adapt to the Public Sector/NGO Role Encourage government or independent labor agencies to monitor labor practices regularly and independently. Build trust and relationships between partners. Some mechanisms to measure this include: International certications that recognize and set standards for the incorporation of vulnerable populations. Price guarantees or oors that are negotiated at the beginning of each season. This measurement should demonstrate that the negotiated price meets both supply and demand needs. Involve all potential partnersespecially the private sector participantat early stages of partnership planning. Ensure the incorporation of vulnerable populations along with local communities. Record the inclusion of individuals from such groups so that numbers can be assessed and compared with non-vulnerable populations.
245
CASE STUDY Building Trust with Forest-Users Group Participants in Nepal
Aveda, a U.S. cosmetics company, partnered with a local Nepali NGO, the Asia Network for Sustainable Agriculture and Bioresources (ANSAB), to buy nontimber forest products (NTFPs) from participants and to build the Nepal NTFP Alliance to bring together forest communities, donors, Nepali and U.S. companies and the certication expertise of the Rainforest Alliance.43 NGOs worked with the government to create forest access to forest-users groups for the collection of herbs and medicinal plants. The NGOs provided training, technical assistance and inputs for locally distilling plant oils, creating a value-added product that is easier to transport for export and has a higher market value.44 The Womens Refugee Commission reports: Project impacts include using fallow and marginal land to cultivate aromatic plants; providing local communities with access to distant markets; developing technical cultivation and processing skills; and generating employment for local community members.45 It also meant that women did not have to walk for days to transport the raw materials. Participating households have seen an annual income increase of 11,202 rupees ($174 USD). The project analyzes the value chain to determine how production can be increased or value can be added, and provides linkages between local groups and socially responsible international companies. Though successful, project challenges include meeting organic certication requirements and bringing neededeven small-scaletechnology to rural areas because of geographical constraints.46 For this alliance, Aveda representatives spent more than two years developing relationships with participants and local organizations before a true sense of trust was developed. This involved extensive discussions with NGOs and participants on each stakeholders responsibilities, expectations and areas of mutual interest, as well as how to achieve those, and price negotiations. This effort to forge a healthy and long term partnership has paid off, as the alliance is now in its sixth year.47
246
This case study on Nepal demonstrates an effective public-private partnership as well as a strengthened value chain in a livelihood intervention. The steps taken along the value chaininputs, production, transportation, distribution, market accessll in gaps by increasing the overall value of the product, and help to improve the livelihoods of program participants: Inputs: the use of uncultivated land to begin production of aromatic plants; training forestusers groups on sustainable forest management; collection of herbs and medicinal plants; building small distillation units; technical support and marketing assistance. Production: the use of small-scale technology (distillation units) to extract oils from the plants, which adds value to the product, raises the product price and reduces the size and weight of the nal product by eliminating the need to transport bulky raw products to market. Transportation/Distribution: overcoming geographical constraints in transporting products over rural areas, aided by the distillation of plant oils and setting up community-based distillation units for easy producer access. Market Access: the partnership between the Rainforest Alliance and Aveda provides access to the high-end export market and connects groups with socially responsible international retailers.48
247
CASE STUDY UN Global Compact Partner Improves Sustainable Livelihoods in Ghana49
The global confectioner Cadbury Schweppes has developed a number of stakeholder partnerships for corporate social responsibility (CSR). In Ghana, farmers who supply cocoa beans to the company live in the tropical forest where the crop is grown, far from any infrastructure. This isolation causes practical challenges, including lack of access to a nearby drinkable water source. To resolve this problem, Cadbury Schweppes partnered with a local farmers cooperative and an NGO, WaterAid, to build 375 wells and improve water sources for nearly 50,000 people. Workers and their children now spend less time collecting water, which enables them to work or go to school, while maintaining a steady supply of cocoa beans to Cadbury Schweppes. The company has also developed a program in partnership with the Ghana Nature Conservation Research Centre and Earthwatch to encourage sustainable farming and biodiversity. Cadbury Schweppes is a member of the International Cocoa Initiative, which seeks to improve supply chain labor conditions, workers incomes and education standards. The UN Global Compact has highlighted Cadbury Schweppes for its leadership in corporate social responsibility.
CASE STUDY Price Negotiations in Honduras50
CARE Canada worked with a cooperative of coffee growers, Montana Verde, to contract with a Canadian retailer, Van Houtte Coffee, to trade a single-origin, ethically produced coffee. In order to determine if the coffee met the buyers standards, 50 samples were submitted, and only three were rejected. Once Van Houtte was interested, CARE negotiated a minimum price, which was set out in a contract. However, the company experienced substantial losses, leading to a decision not to x the price, but rather to peg payment levels to prices set by the New York Board of Trade (NYBT). CARE was then able to negotiate a price differential of $9-10 USD, because the coffee was both very good quality and produced in a socially responsible manner. The company also obtained Fair Trade Certication from FLO Internationala multistakeholder partnership supporting the Fair Trade movement.51
248
IMPLEMENTATION
Once the partnership MOU is in place, partner roles and responsibilities decided and agreed upon, and benchmarks established, the partnership can proceed with implementation. Implementing partners must be sure to: Establish Complaint Mechanisms for Workers The establishment of complaint mechanisms requires linkages with labor organizations, government ministriessuch as the Ministry of Laborand NGOs that work to support labor standards, such as the Solidarity Center,52 an international advocacy organization supporting independent labor unions. Participants should receive training on their rights and labor standards. They should be informed of where they can report grievances and be assured about condentiality. Allow for Dispute Resolution for Partners If, despite consultations and feasibility studies, disagreements do arise, parties can refer to the MOU or contract agreement. Even if it is not legally binding, it establishes the groundwork for discussions on roles, responsibilities and mutual interests. Due to the complexities of post-conict or postdisaster areas, companies often have to develop multiple business plans to work in situations that are constantly changing. While an NGO might be accustomed to operating with such uncertainty, it can be frustrating for businesses to have to constantly adjust contingency plans based on changing laws or collapsing physical or nancial infrastructure. Recognition of this and working in consultation with partners can help overcome these obstacles and prevent disputes or dissolution of partnerships.
Diversify Partnerships When a partnership exists between one private sector agent and participants, there may come a point when access to additional markets or links with other private sector agents is necessary for growth. Supply can outgrow the demand of a single client, and it may be more stable and sustainable for participants livelihoods to cultivate additional relationships. Diversifying partnerships provides an opportunity for participants to address obstacles that developed in previous partnerships. This can involve: diversifying the market, including the source of investments; ensuring working capital and building management capacity to market products; addressing delays in the supply chain; ensuring the supply is reliable and meets international standards.
ONGOING MONITORING
An ongoing monitoring process enables partners to adjust programs and anticipate and address any challenges. Questions to consider include: Are partners adhering to their roles and responsibilities? Are benchmarks of the partnership being met? Is the partnership helping to facilitate livelihood interventions for displaced groups? Is the partnership increasing community vulnerability through any unintended consequences?
249
POTENTIAL CHALLENGES IN PUBLIC-PRIVATE PARTNERSHIPS

While PPPs provide complementary expertise and programming, many challenges can arise. A fundamental difculty in public-private cooperation is the different approaches of NGOs and businesses. Businesses operate in low-risk, secure political contexts where they choose projects that meet the goals of their business model, whereas NGOs must be exible in order to respond to ever-changing and often unstable contexts. Companies may be averse to operating in countries whose governments do not enforce or obey the rule of law, human rights or protection. On the other extreme, practitioners must guard against the potential for some companies to exploit the labor of workers and children in countries where there are no regulations or enforcement mechanisms. A number of potential costs exist when forming partnerships, including:53 initial time and energy expended for partnership and program development; increased nancial costs; negative organizational adaptation: partnership goals may distort or disregard organizational mandates; programs being evaluated solely on the return-on-investment criterion may overlook the needs of participants and local communities; and the private sector partner may have a dominant role due to its nancial and in-kind contributions; failure to agree to the terms of partnership; lack of leadership or one partner having a lack of inuence on decisions; lack of clarity of procedures and processes; duplication of efforts by partners; risks of perceived inequality if certain groups are not targeted as participants and included in all program stages.
Through partner identication, selection and screening, these concerns can be anticipated and mitigated. Partnerships should only be developed if mutual interest exists and there is a common understanding and informed consent among all stakeholders.
The kinds of difculties that might be anticipated and should be mitigated include: New entrants to the market, thereby increasing competition. Confusing the role of the NGO with that of the private sector partner. The partners roles should be made clear to participant communities. The level of the partnership, degree of collaboration and the provision of resources should be clearly stated from the start. Corruption can be a signicant risk, especially in areas with conict or little regulation. Businesses can come under signicant pressure to employ specic individuals or favor certain populations. Attachment to an international company may help maintain certain standards of accountability. Strong management and transparency can guard against corruption risks. Managing expectations. Investment by large companies in displaced or low-income communities can create high expectations for job creation. Businesses can have signicant positive impacts, but the benets may not be apparent and fewer jobs may be created than expected. Frustration can be preempted if local community leaders are involved in stakeholder consultations and understand hiring processes and skills requirements.
250

In long term PPPs, there may need to be an exit strategy for public sector actors in order to make the business endeavor sustainable. Observing the partnership through ongoing monitoring can help partners develop an appropriate strategy. However, having an exit strategy depends on the type of intervention and the role of the public sector partner(s). If the public sector partner is a government agency continually monitoring and evaluating labor standards in a manufacturing plant or an international agency annually auditing certication standards, then an exit strategy is unnecessary. Private sector partners should make the length of their commitment evident so they can work with their public sector partners to make an appropriate and well-timed exit. Abrupt departures by implementing organizations can result in the disruption or failure of programs due to the loss of structure, funding and/or leadership. It is critical to ensure that local community members and/or agencies are well prepared to assume leadership before an NGO partner departs.
Measuring partnership effectivenessevaluating partnership success requires consideration of each partners individual interests Is each partner satised that objectives have been achieved? Have mutual interests been respected? Is the partnership sustainable? Are the participants capable of carrying out the functions of the business relationship independently once partners depart? Maintaining labor standards Has there been due diligence to investigate partners for continued adherence to labor, safety, health and environmental standards? Are partnership agreements being upheld? How are private sector partners handling complaints? Interview present and past workers to nd out how quickly complaints have been addressed, what working conditions and safety protocols have been in place and whether wages have been paid fairly and on time.
EVALUATION
It is important to ensure that benchmarks for the impacts of partnership programming on displaced communities are being met. Three broad categories for monitoring and evaluating PPPs are: Measuring the impact on the participants Has the PPP beneted the participants more than livelihoods programming not involving the private sector?
251

Binder, Andrea and Jan Martin White. Business Engagement in Humanitarian Relief: Key Trends and Policy Implications. Humanitarian Policy Group, Overseas Development Institute, HPG Background Paper, June 2007. www.odi.org.uk/hpg/papers/ hpgbgpaper_monitoringtrends1.pdf. Donor Committee for Enterprise Development. Public Private Partnerships. www.enterprisedevelopment.org/page/public-private-partnerships (accessed March 11, 2009). Jenkins, Beth et al. Business Linkages: Lessons, Opportunities, and Challenges. Harvard University Kennedy School of Government, IFC and the International Business Leaders Forum, 2007. www.hks. harvard.edu/m-rcbg/CSRI/publications/report_16 _BUSINESS%20LINKAGESFINAL.pdf. Miehlbradt, Alexandra and Mary McVay. Implementing Sustainable Private Sector Development: Striving for Tangible Results for the Poor. ILO and Swiss Agency for Development Cooperation, International Training Center, 2006. www.bdsknowledge.org/dyn/bds/docs/497/PSDReader2006.pdf. UNDP. Creating Value for All: Strategies for Doing Business with the Poor. July 2008. www.undp.org/ gimlaunch. UNHCR Corporate Code of Conduct. www.unhcr. org/partners/3d904d954.html. UNICEF. Building Alliances for Children: Summary. UNICEF Guidelines and Manual for Working with the Business Community: Identifying the Best Allies, Developing the Best Alliances, 2001. www.unicef. org/russia/Summary_of_Guidelines_2_pgs.doc.
NOTES
1 USAID, Tools for Alliance Builders, prepared by the Global Development Alliance Secretariat (September 10, 2004), www.usaid.gov/gda. See International Fund for Agricultural Development, IFADs Private-Sector Development and Partnership Strategy (Rome, Executive Board, April 18-20, 2005): p. 3, www.ifad.org/gbdocs/eb/84/e/EB-2005-84-R-4-REV-1.pdf. European Commission, Enterprise and Industry, SME Denition as of May 2003, ec.europa.eu/enterprise/ enterprise_policy/sme_denition/index_en.htm. U.S. Small Business Administration, www.sba.gov. OECD, Small and Medium-Sized Enterprises, Glossary of Statistical Terms, stats.oecd.org/glossary/detail. asp?ID=3123. UN Global Compact, www.unglobalcompact.org. UN Global Compact, United Nations Global Compact Inspirational Guide (June 2007), www.unglobalcompact. org/docs/news_events/8.1/Inspirational_Guide.pdf. UN Global Compact, Annual Review: 2007 Leaders Summit (June 2007), www.unglobalcompact.org/ AboutTheGC/index.html. UNHCR Council of Business Leaders, www.unhcr.org/ partners/451253d14.html. www.ninemillion.org. Business Humanitarian Forum, www.bhforum.ch. World Economic Forum Humanitarian Relief Initiative, www.weforum.org/en/initiatives/HumanitarianRelief Initiative/index.htm. UNDP Growing Inclusive Markets Initiative, www. growinginclusivemarkets.org. International Business Leaders Forum, www.iblf.org. United Nations Foundation, Coalition for Adolescent Girls, www.unfoundation.org/our-impact/empoweringwomen-girls/coalition-for-adolescent-girls.html. The World Bank, The Adolescent Girls Initiative, web. worldbank.org/WBSITE/EXTERNAL/TOPICS/EXTGE NDER/0,,contentMDK:21914520~menuPK:336874~pa gePK:64020865~piPK:51164185~theSitePK:336868,00. html. Andrea Binder and Jan Martin White, Business Engagement in Humanitarian Relief: Key Trends and Policy Implications (Humanitarian Policy Group, Overseas Development Institute, HPG Background Paper, June 2007), www.odi. org.uk/hpg/papers/hpgbgpaper_monitoringtrends1.pdf. International Labour Organization, www.ilo.org. Interview with Dale Buscher, Womens Refugee Commission, March 13, 2008.
4 5
6 7
9 10 11 12
13 14 15
16
17
18 19
252
20
Womens Commission for Refugee Women and Children, Build the Peace: Creating Economic Opportunities in PostConict Liberia (June 2007): p. 11, www.womenscommission.org/pdf/lr_econ.pdf. See Beth Jenkins et al., Business Linkages: Lessons, Opportunities, and Challenges, Harvard University Kennedy School of Government, IFC and the International Business Leaders Forum (2007): p. 6, www.hks.harvard.edu/ m-rcbg/CSRI/publications/report_16_BUSINESS%20 LINKAGESFINAL.pdf. See also, CARE International UK, Key Variables for Designing and Implementing Strategic Partnerships (no date). INSEAD, The TPG-WFP Partnership: Learning How to Dance (April 2004), www.fritzinstitute.org/rescen CaseStudies.htm. INSEAD, Moving the World: The TPG-WFP Partnership: Looking for a Partner, www.fritzinstitute.org/PDFs/ Case-Studies/TPG_part1.pdf. Fleet Forum Initiative, www.movingtheworld.org/ project/5168. See John Bray, Public-Private Partnerships in Statebuilding and Recovery from Conict (International Security Programme, Chatham House, Brieng Paper, ISP BP 06/01, September 2006), www.reliefweb.int/rw/lib.nsf/ db900sid/PANA-794EPW?OpenDocument. IASC Cluster Working Group on Early Recovery, Annex 5: Analysis of Environmental and Natural Resources Issues, in Guidance Note on Early Recovery (October 2007): p. 53, www.undp.org/cpr/iasc/content/docs/ Nov07_Links/Doc_13.pdf. See USAID, Acquisition & Assistance Policy Directive (AAPD), AAPD 04-16, Public Private Guidelines and Collaboration Agreement, issued December 30, 2004, p. 5, www.usaid.gov/business/business_opportunities/cib/pdf/ aapd04_16.pdf. Also, email interviews with Emmanuel Dennis, YES Kenya, March 10 and March 18, 2008. See note 1, pp. 15-16. Also, phone interview with Emily Harwit-Whewell, May 12, 2008. See note 1, Appendix II: Preconditions for Success: An Alliance Checklist, p. 41. World Bank Development Outreach, www1.worldbank. org/devoutreach/. UN Global Compact, The Ten Principles, www.unglobalcompact.org/AbouttheGC/TheTENPrinciples/index.html. International Organization for Standardization, www.iso.org. John Maresca, Bringing Generic Medicine Production to Afghanistan: The Business Humanitarian Forums Cooperative Project with the European Generic Medicines Association, Journal of Generic Medicines, vol. 2, issue 3 (April 2005). See note 11.
35
UNDP, First Generic Medicines Factory Being Set Up in Afghanistan (July 2005), www.undp.org.af/News/2005/ docs/20050705_pr_generic_medicines.pdf. International Rescue Committee, CYCLE contract agreement. International Rescue Committee, CYCLE Program, Apprenticeship Guidelines (March 2007). Peter Biro, The IRC Combats Child Labor in West Africa, June 12, 2006, www.theirc.org/news/latest/ the-irc-combats-child-labor.html. See note 1, pp. 27-28. Development Alternatives, Inc., Transforming Development Concepts and Strategies into Sustainable Solutions CIMCAW, www.dai.com/work/project_detail.php?pid=19. See also, USAID, CIMCAW Alliance: Continuous Improvement in the Central American Marketplace, http://pdf. usaid.gov/pdf_docs/PDACM464.pdf. USAID, Global Development Alliance, www.usaid.gov/ policy/budget/cbj2005/cent_prog/central_gda.html. Email interviews with Emmanuel Dennis, YES Kenya, March 10 and March 18, 2008. ANSAB, Nepal NTFP Alliance Network, www.ansab.org/ ntfp_alliance.php?linkno=5. Womens Commission for Refugee Women and Children, Dont Call It Shangri-La: Economic Programs for Displaced Populations in Nepal (May 2008): p. 6, www.womenscommission.org/pdf/np_econ.pdf. Ibid., p. 7. Ibid. Ibid. See note 44, pp. 6-7. See note 7, p. 64. CARE, Programme Agreement Final Report, 2003-2006. Also, email interview with Marie-Christine Tremblay, May 26, 2008. Fairtrade Labelling Organizations International, www. fairtrade.net. Solidarity Center, www.solidaritycenter.org. See CARE International UK, Key Variables for Designing and Implementing Strategic Partnerships (no date).
36 37 38
21
39 40
22
23
24 25
41 42 43 44
26
45 46 47 48 49 50
27
28 29 30 31 32 33
51 52 53
34
253
Leveraging Remittances
INTRODUCTION
Countries affected by conict and natural disasters are often dependent on remittancesincome or goods sent by relatives located in different regions or parts of the world. While conict often affects livelihood strategies and makes displacement inevitable, remittances can sometimes prevent further displacement. Displaced people are among millions of individuals who receive remittances, which make up a large, usually underquantied portion of receiving countries gross domestic product (GDP).1 They can be a key source of income for displaced people, who rely on them for urgent needs and to supplement humanitarian aid. There has been considerable research on labor migrants and remittances, but there has been limited conceptual discussion about the use of remittances among displaced people.2 It is clear, however, that remittance ows are not reliable, as conict and turmoil in post-crisis recovery can disrupt the transfer of funds, and those remitting funds may not have regular incomes. Remittances have only recently been seen as a critical form of support to livelihood strategies in the shift from dependence on aid to self-sufciency and long term development. Programs that help displaced people to safely receive, save and invest remittances can be important for their economic security. Developing programs to support the ow of remittances and leverage these resources may reduce the vulnerability of displaced people and build upon their livelihood strategies. The emergence of global transnational networks has dramatically increased the global economic impact of remittances, estimated to be well in excess of $200 billion annually.3 Total remittance ows are estimated to be more than twice those of ofcial development assistance (ODA) and larger than ows of foreign direct
254
LEVERAGING REMITTANCES
investment (FDI).4 However, ofcial data on remittance ows are almost completely lacking for many poor and crisis-affected countries that represent the greatest concern to actors in the humanitarian eld.5 The enormous growth in remittance transactions is part of a larger trend of people who migrate for economic, social or political reasons. Refugees and internally displaced persons (IDPs) are among millions of global, regional and intrastate migrants. Displaced people may occasionally remit funds to family and friends, but are generally recipients. This chapter analyzes remittances for displaced people and the ways they can be leveraged to decrease vulnerability and promote livelihoods. On a cautionary note, it should be stressed that given the continuing insecurity in countries of origin, those remitting funds to displaced people may be more likely to fund family members basic needs rather than invest in their development of livelihoods. Remittances tend to restore assets rather than develop asset bases; they generally sustain, rather than transform, the lives of recipients and their local communities.6
KEY LEARNING POINTS

Prior to developing a program to leverage the use of remittances, a comprehensive assessment of needs, assistance gaps and local resources and skills must be conducted with all groups in the community, together with a study of the trends and uses of remittances. Using remittances as a livelihoods program requires sensitive and careful planning to build trust and reduce vulnerabilities within displaced and host communities. Shifts in inequality and insecurity must be monitored closely, as remittance assets can become liabilities in the context of conict, crisis and displacement. Programs should be exible and holistic, taking advantage of cross-sectoral, interagency and community linkages, and drawing upon local knowledge and technical expertise.
255
ESSENTIAL ELEMENTS
Denitions Remittances are income or goods received by individuals or households from other parties who live elsewhere, whether within the same country or region, or another part of the world. Collective remittances are pooled funds sent by a diaspora group to their home community, which are used to increase their impact for development projects and investment. These collective efforts to provide community infrastructure or invest in business and manufacturing are sometimes known as hometown associations (HTAs). To encourage these investments, some governments have created incentives for collective remittances. Formal remittance transfers occur within established nancial systems, such as banks and money transfer operators (such as Western Union and MoneyGram), post ofces and through credit cards and mobile phones. Formal transfer systems allow for greater transparency, more security and faster services than informal transfer systems. Formal systems can also provide access to savings, credit and insurance options through transfer institutions. Informal remittance transfers include transfers of money or in-kind goodsitems of value for investment or consumptionthrough unofcial channels, often sent through social networks or individuals employed to make the transfers. Informal remittances are often unrecorded and difcult to quantify. Informal transfers may be used because displaced people and remitters: may not have access to formal banking systems or transfer companies due to location, prohibitive transfer costs, a lack of formal identication or lack of a common language for communication, leaving informal transfer systems as their only option; may not trust banks or be familiar with nancial systems or currency exchange, particularly in weak economies reliant on barter systems; may trust informal systems because others in their social networks use them; they know transfer agents, and these services may provide door-to-door delivery; may be concerned that the privacy and security of recipients could be compromised through formal channels.7
256
THE USE OF REMITTANCES TO MITIGATE VULNERABILITY

Labor migration is a common strategy used to diversify a households income and reduce vulnerability.8 Families may have members who are located in more stable areas, or may send more employable members as labor migrants to remit resources to more vulnerable displaced members. Remittances are most commonly used to supplement humanitarian aid and address basic needs and living costs. Known uses for remittances include health care and education costs; emergency legal expenses; nancing such rites of passage as birth, marriage or funerals; loan repayment; savings; and modest entrepreneurial investments. Remittances are not stable, ongoing sources of income, and may increase the vulnerabilities of recipients by creating dependency, contributing to inequality and increasing the risk of theft or violence if it is known that recipients have more resources than others in the community. In addition, vulnerability can result from the separation and migration of family members as a livelihoods strategy, as well as from families staying together in an attempt to be more secure. Remittances are limited by the resources, circumstances and needs of remitters. Migration and remittance patterns are likely to change with the onset of conict. Household members may be unable to migrate and the ways in which funds are transferred may be altered. Practitioners must understand the drawbacks of remittances in order to design programs to leverage them for positive livelihoods development. Remittances can increase vulnerabilities if: recipients become dependent on remittances, and do not utilize them to ensure long term livelihood opportunities;
funds are used to support armed groups or a conict economy; funds are used to purchase items that make displaced people more vulnerable to theft; recipients spend scarce resources trying to contact distant family members in order to request continued support; they create social inequalities among community members; there are few secure options for transporting or saving funds.
DEVELOPING PROGRAMS TO SUPPORT THE USE OF REMITTANCES FOR LIVELIHOODS

Programs that leverage remittances to help displaced people protect or rebuild livelihoods often focus on safe places to save and ways to invest their remittances in small business opportunities. To do this, programmers must rst assess trends in remittance ows. The knowledge gained through working with communities can inform livelihood interventions by understanding local capacities, how remittances are used and where gaps may be lled by implementing agencies. It is important to understand how remittances are socially and politically perceived so as to minimize misunderstanding, vulnerabilities and further conict. It is also important to understand which community members are receiving or not receiving remittances. However, because remittances are private, identication of recipients and ows may cause insecurity, so it is critical to ensure the privacy of remittance recipients. Therefore, programming that supports the productive use of remittances should be targeted to both remittance recipients and nonrecipients. Making efforts to assess the effects of remittances on communities can improve practitioners understanding of existing survival strategies.
257
Understanding the dynamics of remittance transfers and their usage can inform programming that can support the use of remittances for livelihoods. Such an understanding can: improve the security of remittance transfers. Knowing how remittances enter a community and where they are stored can inform improvements in transfer systems, infrastructure and savings mechanisms. Remittance patterns can also help identify external events that can increase local vulnerabilities. help target humanitarian assistance. Identifying how remittances are used to ll gaps in humanitarian assistance can help improve the nutrititional value and targeting of aid. inform advocacy. Remittance behaviors can clarify the economic lives and insecurities of recipients, and improve local, national and international advocacy and policy for improved access to services.
Asset and Business Investment Understanding how remittances are spent and knowing whether items purchased are available or produced locally can guide business investment and development by focusing on desired items that are not readily available. Facilitating Purchases and Matching Grants Programs that provide matching grants or facilitate the purchase of items commonly bought with remittances can free up remittance resources for investments or alternative spending. Micronance and Financial Services Partnerships between money transfer operators and micronance institutions (MFIs) can make money transfers cheaper, faster and more accessible. MFIs can increase savings rates of recipients when money is deposited into bank accounts, and may also allow customers to access additional nancial services. Where partnerships are unfeasible, micronance products may still help recipients maximize the value of remittances by using them as collateral for loans and insurance programs. Even in communities without MFIs, matching grants may be used to make the most of informal and formal savings mechanisms. (See Micronance Interventions chapter.) Infrastructure Development Improvements in money transfer and communication technologies, along with better transportation and delivery systems, can reduce transaction costs and increase the security of transfers. Advocacy Remittance channels can be improved by encouraging local, national and international nancial organizations and governments to lower transfer fees, increase access to nancial services, and facilitate transportation and communications options. Increasing awareness about the impor-
ESSENTIAL ELEMENTS OF SUCCESSFUL REMITTANCE LEVERAGING PROGRAMS

Successful programs will include these essential elements: Financial Education Recipients are more likely to use remittances for long term livelihoods investment if they have access to savings mechanisms and other nancial products that will help them maximize and supplement the funds received. Programs that teach households to budget, save and invest can increase the long term positive impact of remittances, while also reducing recipients dependence on them.
258
tance of remittances to livelihoods development among humanitarian staff and practitioners will facilitate appropriate programming and support. Encouraging Collective Remittances Finding ways to engage diaspora communities to send collective remittances can augment their long term impact for displaced communities. This must be accompanied by appropriate management and monitoring, and must include the involvement of the community receiving the funds. Targeting Aid Assessment outcomes that recognize common consumption trends and also identify marginalized groups that are not receiving remittances will enable agencies to address inefciencies in humanitarian aid provisions that can assist these groups. Gender Sensitivity Research has found that women receiving remittances may be more likely to form cooperatives that support other livelihood strategies.9 Access to remittances may also increase womens authority and facilitate entrepreneurial activity and investment. However, even if a woman is the main recipient of remittances, she may not be able to invest due to security concerns and social constraints. Women or girls in possession of money or goods can have jeopardized security, resulting in sexual violence or theft, so awareness must be raised when implementing programs. In some communities, remittances are more likely to be sent to men than women. The gender of remittance recipients can have an impact on how they are used. It has been found that women making decisions regarding household resources are more likely to allocate funds for health care or education. Programs should consider challenges faced by women in receiving, saving and/or investing remittances.
Including the Participation of Vulnerable Groups Particular attention should be paid to older persons, women, youth, separated children, ex-combatants, persons with disabilities and people living with infectious diseases to ensure their safety and livelihoods stability. It is important to understand how remittance investments could improve the health, education, welfare and protection of these groups.
UNDERSTANDING HOW TO LEVERAGE REMITTANCES

A number of factors must be taken into account to both effectively assist in the leveraging of remittances and alleviate any potential negative impacts. Respect the Private Nature of Remittances Because remittances are private resources, programming should help participants maximize investment and savings without directing or manipulating the way resources are used. Programming should encourage an investment in livelihoods, but must respect when participants choose to use their resources for more immediate, critical needs, such as supplementary food, health care, school fees and clothing. Consider Vulnerabilities Encouraging changes or increases in the amount of money transferred can increase the vulnerabilities of both remitters and recipients. Programming must also take into account that remittances depend on the ability and will of the sender and may be irregular or short-lived.
259
Avoid Identifying Specic Recipients or Informal Flows Directly identifying remittance recipients and/or informal transfer mechanisms can make recipients and funds vulnerable to theft and interrupt existing transfer systems. Efforts should be focused on identifying and analyzing remittance trends and patterns to minimize negative effects. Increase Long-term Investment Livelihood programs should help recipients utilize remittances so that they have long term impacts and are not merely used for consumption. Remittance programs should be devised to empower displaced recipients to develop sustainable livelihoods. Assist Recipients and Nonrecipients Programming must be inclusive to reduce inequalities and target all groups that can potentially benet from them. Avoid Changing Functioning Systems Seeking to alter remittance patterns can hinder ows and increase vulnerabilities.
Consider Social Dynamics Assessments should carefully gauge how recipients of remittances are perceived. While in some communities remittances may be shared and used for collective benet, in others, recipients may go to great lengths to hide the support they receive for their households well-being. Increase Quality of Consumption Improving a households ability to purchase needed items can improve the health and wellbeing of its members, while also stimulating the local economy. Analyze Remittances in Conict Settings It is vital to analyze how remittances may fuel conict or illegal enterprises and how to reduce these impacts. Social movements, political groups and militias involved in conict have long been known to receive support through remittances. Governments often regulate and restrict formal remittance ows into countries in conict, despite the difculty in discerning whether they are used for political purposes or for development.10 Regulations that make it difcult to transfer funds legally can increase recipients vulnerabilities and the use of informal channels.
260
Hawala
Hawala is a sophisticated and long-established Islamic nancial transfer system. Dependent on relations of trust and notions of honor, it was originally used to expedite trade but is increasingly used for remittances to expatriate and displaced communities.11 The Somali variant, xawilaad, is used throughout the diaspora for both remittances and business transactions and involves sophisticated phone, radio, satellite and computer networks.12 Hawala brokersknown in some countries as hawalarsprovide remitters with an authentication code they share with recipients. Once the code has been conrmed and given by the recipient to a broker in the receiving country, funds in the local currency are given to the recipient.13 In countries with weak nancial systems and high intra regional migration, hawala is common and may be the only system available. Informal remittance transfers are usually anonymous and unrecorded. They are of increasing concern to regulators due to suspicion they are used for terrorist activities or money laundering.14 As a result of terrorism concerns and intensied nancial monitoring, governments have disrupted hawala and xawilaad networks, impacting both remittance recipients and development work. The British government estimates that remittance ows to Somalia are ve times greater than humanitarian assistance, and notes concern that closure of Hawala outlets in the US and UK after the 11 September terrorist attacks left many Somali families destitute. Many charity organisations operating in health and education were forced to close.15 Somalis have argued that instead of regarding networks with suspicion, the international community should work to assist the hawala system to meet international rules and regulations that will guard against mistreatment.16
261
CASE STUDY The Vital Role of Iraqi Remittances
The Iraqi remittance market is thriving. This is both a result of the expanding economy, with its growing demand for imports, and also due to the presence of more than two million Iraqi refugees outside the country. Very few Iraqis in Iraq have bank accounts, and facilitating remittances from Iraq to Iraqis in the Persian Gulf, Europe, the United States, Jordan, Syria, Lebanon and Egypt is a protable and growing business.17 A UN High Commissioner for Refugees (UNHCR)-sponsored survey in November 2007 found that 71 percent of Iraqi refugees in Syria receive remittances from relatives, primarily from Iraq, but also from the U.S., Sweden and Syria.18 UNHCR reported that 24 percent of interviewed households rely primarily on remittances.19 This case presents a unique example, in which remittances are sent not from outside a country at war, but rather are originating in Iraq. In this particular example, refugees are experiencing greater economic vulnerability than those who have stayed behind in the conict.
PRELIMINARY STEPS
Assessments should not seek to locate recipients or exact remittance ows, but rather should focus on how remittances are used and transferred and affect community social and political dynamics. To ensure the privacy and security of recipients and receive constructive information, assessments of remittances must be done indirectly and cautiously. Recognizing signs of material wealth and/or economic ows requires developing skills in observation, listening and research.
LEARNING TO OBSERVE REMITTANCE FLOWS

Recipient households are unlikely to discuss remittances, but signs of external support can be observed. Observing activities, especially those that connect communities with the outside world, can lead to insights regarding the scale, use and impact of remittances. It is important to avoid assumptions and inferences based upon initial ndings. For example, even if displaced people are communicating with or traveling to outside communities, it does not necessarily mean that they are being supported by members of other communities, or that such remittance ows are regular or reliable. Further, observations are inherently subjective, and can lead to misinterpretation and inaccuracy, so programmers should be aware of this in advance, and supplement their observations with the additional assessment tools provided.
262
The rst step is to understand underlying remittance transfer systems so variations can be distinguished. It is not easy to see variations in economic activity since it is multilayered and signs of external support are likely to be subtle or invisible. Not only are individuals exchanging goods and services for money, they are also linked to the larger market economy. One must understand these linkages in order to identify discrepancies or inequalities. Remittance patterns may be visually identied by observing the patterns of movement of people and goods on main roads, in and out of camps and markets, and at transportation hubs. Observe: Are goods being transported in and out of the community? How are they being moved? Are these goods being taken to markets or to private housing? Are households going outside the community to purchase goods? Are the goods they return with for sale in local markets? When observing activities in local markets try, if possible, to identify: Where have the goods in the market come from? Within the country or from abroad? Are any of the goods that are being sold produced locally? Are traders working alone or collectively? Are traders locally based or are they from outside the community? Where have local traders obtained startup capital? By observing transportation patterns, try to nd out: Where do people go to collect remittances? What forms of transportation are available? What is the cost? What are common local destinations?
Do community members travel outside and, if so, where and how often? Which members of the community travel? Do relatives working outside displaced communities come to visit? By spending time around phone booths, markets and Internet cafs, it may be possible to learn: Where do people call the most? Locally, within the country or abroad? Do community members have mobile phones? What proportion of the population has access to them? How have people with mobile phones obtained them? Have they bought them or been given them by relatives? How many call centers are there? Do people travel outside the community to make calls? How far do they go? Is there an unmet demand for telephones, or an oversupply? Is the Internet accessible? If so, where? If not, is there unmet demand for it? Is there a functioning postal system? If so, do people use it? Do they trust it? If there is a postal system, is it used to transfer funds? It may be possible by simple observation to determine whether some households are receiving remittances. However, it may the case that more successful households are not receiving remittances but rather are savvy with savings and/or entrepreneurial activities. The table below provides initial suggestions on how to observe and interpret inequalities that may indicate the receipt of remittances. Record your general ndings below by using the following questions as a guide:
263
Are many households receiving remittances? Is labor migration a common livelihoods strategy? What is the volume of support? Is it in-kind, cash or both? Do remitters seem to be living regionally or overseas? How are remittances transferred/transported? What formal and informal systems are used? What formal and informal systems are available? How do remittance recipients communicate with remitting migrants? How are remittances spent? Saved? Invested? What are the positive and negative impacts of labor migration and remittances on vulnerable households? Are there observable connections between remittances and political/insurgent groups?
264
Observing Inequalities
Housing Where to look Homes and living quarters What to look for What kinds of structures do people live in? Where did building materials come from? Are they new? Do some housing structures have new roofs, reinforced walls, electricity or generators? Interpreting Questions Are some living quarters or houses bigger, more durable, differently shaped or constructed? Findings Households with housing that is larger, more durable and/ or newly repaired may be receiving external support. This support may or may not be in the form of remittances.
Consumption Where to look Private possessions What to look for What sort of luxury items do people own? Luxury items might include satellite dishes, mobile phones, electronic goods, new clothes, jewelry or school materials/ uniforms. Money may be saved through investments in land or valuable goods rather than in savings accounts or with groups. Interpreting Questions Do some households have luxury items that are unavailable or inaccessible to others? Findings Households/individuals with luxury items may receive in-kind or cash remittances.
265
Business Where to look Markets What to look for Do people with small businesses have structures/ stands to sell their goods? Who sells and trades? Who does not? Are there disparities in the size and scale of stands or in the tools and resources being used? Interpreting Questions Are there inequalities in the supplies/stands used by local businesspeople? Findings Business people receiving remittances from family members may invest them in their businesses.
Other Where to look Schools What to look for Where do children go to school? Do some children go to special schools? Interpreting Questions What is the tuition needed for those schools? Findings Tuition fees, books, school supplies and transportation costs and other items may be paid for by family members outside the community. Ticket counters Are there family members going on trips to distant areas? How much do tickets cost? Are they expensive?
266
CASE STUDY Informal Remittance Transfers in Sudan20
In southern Sudan and Darfur, people have little access to or trust of institutions that conduct formal remittance transfers. Instead, people have relatives from outside buy a sizeable amount of mobile phone credit. They will then send a text message with the credit to someone in the region who will then transfer the credit to the targeted relative. To receive cash, the relative will then sell mobile air time to others. A concern with this method is that the government could intervene by monitoring large transfers of phone credit.
It is fairly common in some areas for refugees and IDPs to have mobile phones as a survival strategy in order to be able to communicate with their remitting relatives and receive transfers of phone credit that they can exchange for cash. (See case study above.) As a result of this growing trend, the ownership of mobile phones may not be an accurate indicator of wealth, but it may help uncover which members of the community are receiving remittances.
are perceived to be in positions of power and are sometimes not trusted by displaced people. The position of the interviewer will affect the accuracy and depth of information collected. Those with leadership roles within displaced communities or individuals who provoke mistrust or unease should not conduct oral assessments. The key questions that planners of any remittancerelated intervention should endeavor to answer include: Who is getting remittances? How they are getting them? Where are they coming from? Who is sending them? Do remitters specify what they would like them to be used for? Have they been sent over the long term or only once the crisis began? How has the crisis affected remittance ows? Are they cash or in-kind? What are recipients doing with them? Where and how do people save or invest the remittances they receive? Why are they using them in the ways they do?
DISCUSSING REMITTANCES
Remember that there are a great number of sensitivities around remittances. Power dynamics within a community and between community members and agency staff must be considered before investigating remittances. Visual assessments are needed to inform discussions with displaced and local communities and colleagues. Discussing remittances is rarely socially or politically appropriate, and inquiries can be perceived as presumptuous, suspicious and threatening. Before speaking with displaced people about their nancial situation, try to establish trust and anticipate possible unintended consequences. Interviewers must always be aware of their role and realize that humanitarian aid workers
267
When obtaining information around these questions, which is often likely to be only partial, think about how your ndings should feed into discussions about how to respond. Should the priorities be to: create a more enabling environment to receive remittances (i.e., better communications infrastructure)? target those who do not receive remittances with additional aid (such as food supplements)? support savings-led initiatives, linking to microcredit, offering nancial education or supporting enterprise development? The following table presents two techniques for discussing sensitive issues.
268
Information-collecting Techniques
Ask Third-person Questions Method Most people will not want to speak directly about the money and support they receive, but may be willing to speak generically about their neighbors. Sample Questions Do people in your community receive money from family members living overseas or from another part of the country? Do you know people who receive money from family members working in outside communities? What kinds of gifts do people receive from family members working outside? In your experience, how do people receive money or gifts from family members working outside? Do people you know pick money up from outside this community, or is it delivered? Where do people who receive remittances go to pick them up? Do people you know who receive support use banks? Where? What do people spend remittances on? Do people you know save money? How? Remain aware of how your questions affect individuals. Stop if someone is uneasy. Information should be cross-checked in order to increase accuracy. Tips Information given might not be accurate. Conversations should be embedded in other discussions so as to avoid a direct focus on remittances.
269
Integrate Inquiries into Other Activities Method While people may not be eager to discuss remittances openly, they may indirectly refer to them or to outside family members when they are in familiar, comfortable environments. Do you have family members who live outside the country or community? Have these family members found jobs? If so, what kind? Do you speak to them often? You must miss them; have they ever come to visit? Your __________ looks great; is it new? Be aware of the mood of the discussion. Stop immediately if anyone seems uncomfortable. Sample Questions Speak to community members casually about their families. Ask, for example: People with outside family members or who receive gifts are not necessarily receiving continual support. Tips Information given might not be accurate. Information should be cross checked.
270
The following table presents two strategies that may be used to learn about migration patterns or the impact of remittances on wealth patterns.
Qualitative Methods of Assessing Remittance Flows by Assessment Type21

Wealth Analysis Description Learn how community members dene who is rich and who is poor and to identify sources of wealth. What kinds of households are rich? What makes one poor? Who is in the middle? How do you know if someone is wealthy? What do they own or have that suggests they are wealthy (e.g., livestock, land, electronic goods)? What are the ows of money in the community? Do most wealthy households have family members who live outside of the camp or community? For each group, identify where they get the assets that distinguish them as wealthy. Findings from a wealth analysis should be used to inform additional visual assessments. Methodology When speaking to members of the community, ask them: Interpretation Households that are doing well and have members living and working in outside communities may be receiving external support. However, more impoverished households may be receiving support because their remitting family members know they are struggling.
271
Assess Household Composition Description Learn how household composition has changed over time and identify migration patterns. Who lived with you before the conict/disaster? During the crisis? After the crisis? Who lives with you now? If a member is no longer living in the household or in the community and is still alive: Where does your_______ live now? Learn how they communicate with this family member: Do you get to speak with ________? How do you learn how they are doing? Learn if their family members come to visit: Do your ______ ever visit? If so: When ________ come to visit, do they bring things from outside? Like what (e.g., food, clothes, building supplies)? Households receiving gifts may not think of these in-kind contributions as remittances. Asking about what gifts family members bring home will help elicit this information. Methodology Ask households: Interpretation Family members who no longer live in the community may be remitting.
272
In addition to displaced people, discussions with fellow staff members, colleagues from other organizations and other people living and working in the community can lead to insights regarding remittance ows. The following table provides example questions and tips.
Alternative Sources of Information Whom to interview Agency staff Sample Questions Initiate conversations with colleagues to broaden and verify your knowledge of remittances. Ask: What signs have you seen that people are receiving cash or goods from outside the camp? What kinds of goods do you see people purchasing or receiving? Where are these goods coming from? Do you know if people are saving? How are they saving? Local Informants Discuss remittances with local people involved in economic activities. Ask: Can you tell me about the kinds of goods you, and people you know, transport to this camp/ community? Do you or people you know help transport goods or money for other people? Where do you purchase goods you bring to the camp? Where are the closest banks or wire transfer companies? Do people in this community/ camp receive money or gifts from family members outside? If so, how, and what kinds of things? What do you think people in this community/camp do with the money they receive from outside? How do people in this community/ camp get the resources needed to start their businesses? Tips Staff knowledge will vary depending on their previous experience, country of origin and relationship with displaced people. Be aware of potential biases.
Local merchants and traders are likely to know what is coming in and going out of a camp or community. Questions about cash and in-kind remittances should be indirect and embedded in other discussions. Assess local political dynamics to ensure conversations will not increase the vulnerability of remittance recipients.
273
DESIGN
PROVIDING PROGRAMS TO SUPPORT REMITTANCES AND LIVELIHOODS INVESTMENT
Program design should be centered around supporting members of the displaced community who receive remittances to leverage these resources in a way that will lead to sustainable livelihoods and long term security. However, programs should not be exclusive; they should also include displaced members of the community who do not receive remittances so they too can benet from support to build their livelihoods and make choices that will facilitate self-reliance. The inclusion of the larger community also helps ensure the anonymity and security of remittance recipients. Programming related to remittances must be appropriate for the context and needs of program participants.
MICROFINANCE INSTITUTIONS In environments where cash remittances are received regularly and in greater volume, micronance institutions can expand their clientele and the services they provide. They can also provide products that help remittance recipients save, invest and leverage the funds they receive even if they cannot access formal transfer systems. MFIs can provide hard-toreach clients with a quality product at a lower cost and help clients build a safety net. (See Micronance Interventions chapter.) The diagram below details possible interventions that are meant for communities with MFIs that are also receiving cash remittances. Interventions are divided between communities with access to formal transfer systems and those without access.
FINANCIAL EDUCATION Financial literacy is low in many communities, particularly in weak cash economies with low levels of education. Financial education programs can be useful for both remittance recipients and nonrecipients and should combine basic nancial literacy and budgeting skills with information about formal and informal savings, insurance and investment mechanisms. Discussing the long term impacts of different kinds of investment and providing good practice examples can help displaced people think differently about their resources and livelihood strategies, and be prepared to mitigate shocks in the future.
274
Flow Chart: Financial Interventions
Start
Available MFI?
YES
NO
Available savings products?
Possible Interventions: See General Interventions
YES
NO Are formal remittances providers available?
Are formal remittance providers available?
YES
NO
YES
NO
Possible Interventions: Provide direct money transfers Offer matching loans Use remittance receipts as collateral for loans Advocate for partnering MFIs with money transfer agencies Encourage savings
Possible Interventions: Develop savings products Offer matching loans Use remittance receipts as collateral for loans Advocate for partnering MFIs with money transfer agencies
Possible Interventions: Offer matching loans Encourage savings
Possible Interventions: Develop savings products Offer matching loans
275
Where formal remittance providers exist, agencies can advocate for partnerships between MFIs, banks and money transfer operators to make transfers cheaper, faster and more accessible; increase savings rates of remittance recipients; and provide them with access to additional nancial services. Such partnerships not only benet remittance recipients, but also enable money transfer operators to expand their services into rural or difcult-to-access areas. Partnerships also allow MFIs to grow and attract clients to other services they provide. Partnerships with money transfer operators and MFIs may allow for funds to be directly used for building supplies or other items, startup capital, education or otherwise inaccessible goods that can facilitate investment. Funds may also be combined with matching grants. These arrangements increase the security of transactions. There is scope for MFIs to leverage remittances to develop savings and insurance products and offer matching loans to recipients of informal remittance transfers so that they can benet from these services as well. Micronance institutions also benet from the growth of their client base. It should be noted that savings products have often had conditions that reduce clients ability to make autonomous decisions, thus making them unattractive. Therefore, good programming provides savings products that are accessible to poor clients, are relatively liquid and have very low or positive interest rates.
Micronance products should be accompanied by business development services that will enable successful enterprise development. Such services may include technical assistance and business advice, market linkages and infrastructure development.
CASE STUDY Combining Micronance Products with Remittances22
A Haitian MFI, Fonkoze, requires senders to deposit money into a savings account. Although the client is free to withdraw the whole amount, the organization reports that clients often choose to leave savings in the account, withdrawing money over time. This promotes further transfers for recipients, and gradually builds remitters savings. An MFI in Guatemala, Salcaj, has expanded its services by offering remittance recipients pension funds, life insurance, small business credit and various savings packages, all of which may help strengthen livelihoods.
If formal money transfer services are available, it is possible, as the below case study shows, to use remittance receipts as collateral for loans.
276
CASE STUDY Using Remittances as Collateral23
In 2008, Habitat for Humanity launched pilot programs in Nicaragua and El Salvador allowing participants to leverage their remittances to receive loans to repair their homes. Women whose husbands have emigrated for work have limited proof of income, and women often lack livelihoods that would permit them to make loan repayments. MFIs are therefore wary of remittance recipients whom they perceive to be risky borrowers. To encourage MFIs to provide loans, Habitat for Humanity promised MFIs a portion of the loan repayment if a loan is not repaid, thus lessening their risk. Habitat for Humanity identied robust MFIs sharing similar values, and held focus groups with their clients in order to assess their needs and adapt the program to local needs. Promoting the possibility of using remittance receipts as collateral was done through word of mouth, brochures, radio advertisements and SMS (text) messages. In order to receive a loan, families are asked to provide at least three recent receipts from formal remittance transfers and must be vetted by the MFIs standard social assessment processes. Initially, clients receive small loans with shorter repayment periods, but as they prove they are reliable, loan sizes and repayment schedules increase. Over time, as clients build a credit record, the insurance mechanism provided by Habitat for Humanity to the MFI will no longer be needed. Loans are used for such home improvements as replacing/improving roofs, walls or oors. Habitat for Humanity assists by purchasing building supplies and arranging labor-helpful services for female household heads who may feel uncomfortable, unsupported or unqualied to do so alone.
277
ENCOURAGING SAVINGS AND ASSET AND BUSINESS INVESTMENT Livelihoods programming that encourages business development can help recipients invest remittances. Galvanizing remittance savings has the potential to decrease their use for consumption, protect against theft, encourage investment and guard against the shocks of displacement and conict. Possible informal savings mechanisms include Accumulating Savings and Credit Associations, annual savings clubs and door-to-door deposit collectors. Entrepreneurship and business investment should also be supported. (See the Micronance Interventions and Enterprise Development chapters.)
MATCHING GRANTS Organizations may also help leverage remittances and build upon existing capacities by offering matching grants, and permitting households receiving relatively small amounts of cash or in-kind remittances to increase the amount they are able to invest in livelihood activities. Nonrecipients of remittanceswhether or not they have savings should also be offered this service. For privacy and security, as above, programming must not visibly distinguish between remittance recipients and nonrecipients. There are drawbacks, however, to matching grants. Practitioners should use them with caution, as they can create dependency on free money, make participants reluctant to take out microloans and can prevent participants from building a credit history.
CASE STUDY Investing Remittances in Kenya24
A refugee in the Hagadera camp in Dadaab used money received from a cousin in Canada to buy computers and to provide local computer training for Somali refugees. The business thrived as many refugees, youth in particular, were very concerned about the lack of educational opportunities and thus were eager to pay for his services.
CREATING AN ENABLING ENVIRONMENT FOR PROGRAM SUPPORT OF REMITTANCES

In addition to supporting livelihoods development through remittances, practitioners should work to facilitate the transfer of remittances.
INVESTING IN COMMUNICATIONS INFRASTRUCTURE Remittance ows can be limited by inadequate technology and infrastructure. Improvements in banking systems, information and communication technology (ICT) facilities, roads and postal services can help recipients to receive in-kind and cash remittances and communicate with their remitting family members. Recent improvements in transfer systems have made it possible to remit funds through mobile phones or the Internet. Increasing access to these servicesand training in how to use
In such a circumstance, agencies should elicit feedback from the community and assess the possibility of supporting such initiatives, as they have the potential to improve the livelihood opportunities of other refugees by providing ancillary resources.
278
them, for all groupsmay help recipients receive funds in a fast, inexpensive and secure manner, as well as access nancial products more easily.
CASE STUDY Conict Disrupts Remittance Flows in Darfur
CASE STUDY Answering Local Demands Communication Centers25
In the Ghanaian refugee camp of Buduburam, a number of Liberian refugees who receive remittances from family or friends in the U.S. have used them to invest in businesses or pay for emergency expenses. Communication centers and mobile phones are commonplace, and calls to the U.S. are frequent. However, lack of camp facilities obliges refugees to travel to the Ghanaian capital, Accra, to access Internet cafs. The need for communications facilities is critical, particularly as displaced people use them in order to contact remitting relatives.
Conict in Darfur has interrupted remittance ows and existing livelihood strategies used by IDPs. Prior to the conict, cash and in-kind remittances were usually transferred through third parties to friends and family in Darfur on market days from other parts of Sudan, as well as from Libya, Egypt, Saudi Arabia and Iraq. As a result of the prolonged conict, communication is limited, markets are not functioning, travel is unsafe and regional IDP labor migration has been greatly reduced. Remittances have been widely disrupted due to insecurity, border closures, restrictions on the movement of people and goods, bank closures, deteriorating communications, loss of contact among relatives following displacement, reduced income to pay for transportation to leave Darfur, conscription pressures on men and high ination.26 Darfuri migrants have long sought work in Libya, which provides more labor opportunities than any of Darfurs neighboring countries. Despite the distance of more than 1,000 miles, labor migration to Libya has been a livelihoods strategy in all regions of Darfur. There are no ofcial gures available, but there may be up to a quarter of a million Darfuris in Libya. Conict in Darfur and closure of the border in 2003 has limited established trade routes, remittance ows and communication. Despair among Darfuris has resulted, due to the loss of contact and uncertainty about family members in Darfur, the difculty of returning to Sudan and the threat of detention.27
Agencies should respond to the demand demonstrated by inclusive and community-wide assessments by implementing programs to support communications that facilitate remittances. Aiding entrepreneurs to provide email and telephone services in camps has multiple benets: encouraging investment for local economic development; enabling more displaced people to seek outside assistance; providing communications services for those whose physical inability makes travel difcult; and reducing transportation costs.
279
To improve the ow of vitally needed remittances to Darfur, international actors should discuss how to open the border, ensure safety of transportation links, improve communications between Darfuri migrants and their families and provide mechanisms for family tracing.28 The experience of Darfur demonstrates that any strategy for longer-term recovery needs to look beyond the area itself to diasporas in rst, second and even third destination countries, and consider the role of economic migration and remittances and how to facilitate their ow.29 Aid actors can also play a useful role in advocating for and supporting policies to enable migration and remittances.
IMPLEMENTATION
ONGOING MONITORING
Ongoing monitoring is needed to identify changes in social dynamics, remittance ows, savings and consumption patterns, infrastructure, government policy, conict and the security of remittance recipients. A time line for monitoring and evaluation should be created. Frequent evaluations are essential to ensuring that programs leverage remittances, reduce vulnerabilities and identify unintended consequences that may increase insecurities and interrupt transfer ows. Findings should be used to inform and adjust further programming. While conducting ongoing monitoring, it is important to consider how programs have affected: vulnerable households that appear to be remittance recipients; remittance ows; consumption patterns; community savings and investment rates; individual, household and community security; inequalities within the community; social perceptions of remittances; relations with outside communities;
ADVOCACY Fees attached to formal remittance transfers can be high, reducing the overall value of the amount received. Advocating on behalf of remittance recipients to local, national and international nancial institutions, organizations and governments to lower transfer fees, increase access to nancial services, improve security and facilitate transportation and communications is vitally important. Such advocacy may improve opportunities for all members of the community seeking to build savings and develop livelihoods, not just displaced households receiving remittances.
Project monitoring should seek to identify and remedy unintended consequences that may have occurred. These may include: Interruption of existing remittance ows Programs or assessments that intentionally or unintentionally make informal money transfer
280
systems public may disrupt them or make transfers insecure. Increased insecurity for recipients If programs or assessments expose remittance recipients, theyas well as relatives and neighborsmay be more vulnerable to theft. In addition, if savings programs are run poorly, they can increase participants vulnerabilities and cause distrust in banking systems. Prolonged conict If programs that facilitate ows or increase investment and savings rates are utilized by political groups, they may potentially prolong conict, increase community insecurity and harm vulnerable and marginalized groups. Decreased efciency Encouraging remittances through formal transfer systems may inadvertently increase costs, reduce speed of delivery and hinder informal transfer systems. Well-functioning informal systems may be the most efcient means of transferring funds. However, remittance senders and recipients may only have access to one of the two transfer systems, and when they have a choice, they will ultimately decide which method they trust and which suits their interests. Increased community inequality Enabling recipients to save and invest may increase inequalities between those who receive remittances and those who do not. Household inequalities should be considered in aid distribution. Dependence on remittances Encouraging remittance ows without providing nancial education may lead recipients to neglect other means of creating livelihoods and increase their dependence on remittances for living costs.
Increased vulnerability for senders Programs that encourage remittance recipients to request more funds can increase migrants and/ or resettled refugees vulnerabilities by increasing their nancial obligations. If remitters believe that requests for additional support are unjustied, they may also cease to remit funds. Unintended consequences may not always be evident or easy to assess since livelihood programs that utilize remittances have an impact on both recipients and remitting migrants. Onerous burdens on resettled refugees who send remittances can impact their security and stability, and hinder their ability to assist displaced family members over the long term.
CASE STUDY Remittance Burdens for Sudanese Refugees Resettled in the U.S.30
A Dinka man resettled in the U.S. was found to be providing remittances to 24 recipients in Sudan, and indirectly supporting another 38 individuals in Uganda, Libya, Egypt and Kenya. Six of his relatives whom he supports require $400 USD per month. This Sudanese remitter is only able to send money to the other recipients on a bimonthly or more sporadic basis due to his lack of nancial stability. Most recipients are in asylum host countries, where there is limited humanitarian assistance, which may account for increased demand for remittances.
281
CASE STUDY Dependency on and Inefciency of Remittances31
A Somali woman, resettled in Minneapolis, who regularly sent remittances to her family decided to cut her assistance in half after visiting her relatives in Somalia. She was disappointed to realize that the total of $800 USD per month she sent to different family members was not being spent on basic needs or livelihoods development. She chose to stop sending assistance to her brothers due to their imprudence with her remittance funds. She purchased beds for her brothers children while she was in Somalia, resolved to send $200 to her father for his and her epileptic brothers needs, and another $200 to her fathers cousin on the condition that he spend three-quarters of it on her nephews and nieces.
The misuse of nancial support is damaging to both displaced remittance recipients and remitters. Programs that facilitate the use of remittances to consistently encourage nancial independence will help keep all members of transnational networks secure.
THE IMPLICATIONS OF REMITTANCES FOR HUMANITARIAN ACTION A two-year study of the impact of remittances, Remittances during Crises: Implications for Humanitarian Response, largely based on case studies in six disaster- and conict-affected countries, was carried out by the Overseas Development Institute in the UK, in conjunction with members of the Research Consortium on Remittances in Conict and Crises.32 The report concluded: Aid agencies need to understand remittances as part of predisaster livelihoods. In assessments, agencies need to understand how remittances have been disrupted by crises. There is a strong argument for investing more in support for family tracing. There should be a focus on supporting the restoration of communications systems after disasters, and enabling people to get in touch with relatives. Migrant and diaspora populations may also
LEARNING FROM GOOD PRACTICE

Although remittances sent from resettled or repatriated refugees and/or labor migrants have long been used as livelihood strategies by displaced households, only in recent decades has the scale of these transmissions received recognition as a development tool. There are few established programs in conict settings that seek to leverage the impact of remittances and to reduce vulnerabilities. The interventions described in this chapter are rst steps towards maximizing the impact of remittances through savings, investment and targeted aid. Much more needs to be learned about the roles assumed by diaspora groups and migrant communities from countries in crisis.
282
benet from support, which might include information about how to contact people and send assistance and support to return home. Remittance companies could be encouraged to waive or reduce fees after quick-onset disasters. Agencies may need to advocate for governments to respect international humanitarian, human rights and refugee law, particularly with respect to freedom of movement. Remittance channels may provide mechanisms for aid agencies to transfer resources to pay staff or provide cash payments to disaster-affected populations. Humanitarian assistance should be provided in ways that enable people to complement it with their own resources. The choice and exibility provided by cash grants may be particularly appropriate. Care should be taken in imposing work requirements and in the timing and location of distributions to allow for the fact that migration is often a key part of livelihood strategies. Refugee policies that enable local integration, allow freedom of movement and respect rights for employment are desirable for many reasons, but could also enable refugees to become remittance senders as well as receivers.33
education courses should prepare displaced people to make informed decisions about budgeting and protecting their own livelihoods while also addressing the best strategies for channeling remittances and maximizing their use.
ENCOURAGING COLLECTIVE REMITTANCES AND MIGRANT INVESTMENT

Engaging identied diaspora communities can help increase the long term effectiveness and impact that remittances have on communities at large. Donors are increasingly interested in helping harness remittances toward collective livelihoods support programs and reducing transaction costs. A report by the UK Department for International Development (DFID) found that specialist money transfer companies are generally cheaper than banks for migrants sending money home.34 In many countries, especially in Latin America, hometown associations have been formed to facilitate collective investment in development projects. By allocating a small part of what they would send home, migrants who join HTAs hope to reduce household and community dependence on remittances. Skills transfers may be arranged where migrants return to their community of origin to help build local capacities by training local workers and working with local organizations. In countries largely dependent on remittances, these programs have often been encouraged by governments. Since HTAs may not have the expertise or technical skills to make community development investment decisions, forming inter agency partnerships may allow for technical assistance to be provided to them.
PREPARING RESETTLED REFUGEES FOR FUTURE FINANCIAL OBLIGATIONS

Refugees being prepared for third-country resettlement can expect to bear the same nancial obligations as those who migrate to nd work. Since supporting family members may be a lifelong commitment, sending remittances may prolong vulnerabilities long after migration and resettlement occurs. These hardships can be unexpected and may cause nancial and emotional strain. Financial
283
CREATING INTRA- AND INTER-AGENCY NETWORKS

Creating networks among organizations involved in humanitarian aid, resettlement and advocacy, and building partnerships between them and nancial and communications institutions have the potential to increase the developmental impact of remittances.
CASE STUDY Western Union and Mercy Corps Partner to Provide Financial Education to Leverage the Impact of Remittances d
In 2007, Western Union established a charitable initiative, Our World, Our Family, selecting Mercy Corps as its rst humanitarian partner. The focus of the ve-year, $50 million program is on increasing economic growth through providing nancial education and global economic opportunity programs. The project aims to improve nancial literacy by providing tools and resources, and connecting households and communities with the global economy, all in an effort to leverage the impact of remittances sent around the world.
Agencies providing humanitarian aid and resettlement services may decrease vulnerabilities by helping to facilitate transnational networks to harness the use of remittances. By improving communications and remittance services between groups, agencies have the opportunity to reduce costs and increase security. Such partnerships may drive innovations to help resettled refugees and communities to invest or encourage livelihood investments in their places of origin. By educating both recipient and resettled communities, creating investment opportunities, facilitating direct purchases and/or creating matching grant programs, organizations can use intra-agency networks to maximize remittances and reduce dependence. Some organizations have begun to consider linkages between their refugee and resettlement units that could facilitate programming in this area.
EVALUATION
An ongoing evaluation process enables practitioners to adjust programs and anticipate and address any unintended consequences. Measuring the positive and negative impacts of remittances programming must be done sensitively. It is critical to assess whether all groups in displaced and local communities, including those that do not receive remittances and vulnerable groups, have been involved in all program stages. Other stakeholders who should be involved in monitoring and evaluation include aid agencies, community-based organizations, government agencies and nance organizations. Important questions to ask: How are remittances spent? Are remittance transfers efcient and secure? Are they funding consumption needs or building future livelihoods security?
284
Are remittance recipients utilizing funds and resources to invest in the development of their livelihoods? Are there measurable increases in self-sufciency? Are remittances improving peoples long term economic opportunities? Are programs improving the decision-making power of women and vulnerable groups to reduce dependence and insecurity? Has the whole community beneted, or are remittance programs simply beneting recipient households? Are program goals being met? Are anticipated time lines realistic? Are programs causing inequality and tension by focusing on remittance recipients? Have remittance programs promoted peace and reconciliation? What are the intangible benets of the intervention? Can they be measured? Evaluations should seek to understand the evolving dynamics that arise with remittances due to their sensitive nature and their reliance on transnational networks for livelihoods development.

Agunias, Dovelyn Rannveig. Remittances and Development: Trends, Impacts, and Policy Options: A Review of the Literature. Migration Policy Institute, 2006. www.migrationpolicy.org/pubs/author.php. Fagen, Patricia Weiss and Micah N. Bump. Remittances in Conict and Crises: How Remittance Sustain Livelihoods in War, Crisis, and Transitions to Peace. International Peace Academy, Security-Development Nexus Program Policy Paper, December 2005. siteresources.worldbank.org/INTTOPCONF3/ Resources/IPA_Summary.doc. Georgetown University Institute for the Study of International Migration, Research Consortium on Remittances in Conict and Crises. www12. georgetown.edu/sfs/isim/pages/RCRCC.html. Lindley, Anna. Conict-induced Migration and Remittances: Exploring Conceptual Frameworks. Refugee Studies Centre, University of Oxford, RSC Working Paper no.47, May 2008. www.rsc.ox.ac. uk/PDFs/RSCworkingpaper47.pdf. Ratha, Dilip. Leveraging Remittances for Development. Migration Policy Institute Policy Brief, Program on Migrants, Migration and Development, June 2007. www.migrationpolicy.org/pubs/ MigDevPB_062507.pdf. Sander, Cerstin and Samuel Munzele Maimbo. Migrant Labor Remittances in Africa: Reducing Obstacles to Development Contributions. The World Bank Africa Region Working Paper Series no.64, November 2003. www.worldbank.org/afr/wps/ wp64.pdf. Savage, Kevin and Paul Harvey, Eds. Remittances during Crises: Implications for Humanitarian Response. Humanitarian Policy Group, Overseas
285
Development Institute, HPG Report 25, May 2007. www.odi.org.uk/HPG/papers/hpgreport25.pdf. UN International Research and Training Institute for the Advancement of Women. Crossing Borders: Remittances, Gender and Development. UN-INSTRAW Working Paper, June 2005. www. un-instraw.org/en/index.php?option=content&task =blogcategory&id=72&Itemid=104. The World Bank. Migration and Remittances Fact Book 2008. www.worldbank.org.
pid/1674?entryId=11696. 8 9 See note 1, p. 6. Dovelyn Rannveig Agunias, Remittances and Development: Trends, Impacts, and Policy Options: A Review of the Literature, Migration Policy Institute (2006), http://www. migrationpolicy.org/pubs/author.php. Ibid. Cindy Horst, The Role of Remittances in the Transnational Livelihood Strategies of Somalis, in Global Migration and Development, T. van Naerssen et al., eds., pp. 91110 (London: Routledge, 2008). Cindy Horst, Connected Lives: Somalis in Minneapolis, Family Responsibilities and the Migration Dreams of Relatives, UNHCR New Issues in Refugee Research, Research Paper no.124 (July 2006): p. 4, www.unhcr.org/ doclist/research/3b8a11284.html. Mohammed El-Qorchi, Hawala, Finance & Development: A Quarterly Magazine of the IMF, 39, no.4 (December 2002), www.imf.org/external/pubs/ft/ fandd/2002/12/elqorchi.htm. Ibid. Department for International Development (DFID), Fighting Poverty to Build a Safer World: A Strategy for Security and Development (March 2005): p. 15, www.dd. gov.uk/pubs/les/securityforall.pdf. Raqiya D. Abdalla, The Hawala in Somali Society, www.somalifamily.org/news_hawala.htm. International Association of Money Transfer Networks, The Remittance Trail to Iraq, Money Transfers Newsletter (January 2008), www.iamtn.org/content/remittance-trailiraq. UNHCR and IPSOS Market Research, Second IPSOS Survey on Iraqi Refugees (November 2007), p. 5, media. mcclatchydc.com/smedia/2007/12/14/16/IPSOS-IISurvey-Dec07.source.prod_afliate.91.pdf. UNHCR Iraq, The Iraq Situation, Iraqi Refugees: Fresh Research Studies, www.unhcr.org/cgi-bin/texis/ vtx/iraq?page=news&id=4762b3554 (accessed February 2009). Interview with Babiker Badri, November 20, 2008. Telephone interview with Elizabeth Stites, Feinstein International Center, Tufts University, April 1, 2008. Anne H. Hastings, Entry of MFIs into the Remittance Market: Opportunities and Challenges (The Global Microcredit Summit, Halifax, Nova Scotia, Canada, November 13, 2006), newsletters.worldbank.org/external/ default/main?menuPK=723647&theSitePK=723639
10 11
12
13
NOTES
1
14 15
Anna Lindley, Conict-induced Migration and Remittances:

Exploring Conceptual Frameworks, Refugee Studies Centre, University of Oxford, RSC Working Paper no.47 (May 2008), www.rsc.ox.ac.uk/PDFs/RSCworkingpaper47. pdf. Ofcial remittances in Bosnia and Herzegovina, El Salvador, Haiti, Lebanon, Nicaragua, Serbia and Montenegro comprise 10 percent or more of GDP.
16 17
2 3
Ibid, p. 4. See Dilip Ratha et al., Remittance Trends 2007, World Bank Migration and Development Brief 3, Development Prospects Group, Migration and Remittances Team (November 29, 2007), http://siteresources.worldbank. org/EXTDECPROSPECTS/Resources/4768821157133580628/BriengNote3.pdf. Ibid. See also, Kevin Savage and Paul Harvey, eds., Remittances during Crises: Implications for Humanitarian Response, Humanitarian Policy Group Overseas Development Institute, HPG Report 25 (2007), www.odi.org.uk/ HPG/papers/hpgreport25.pdf. Kevin Savage and Paul Harvey, eds., Remittances during Crises: Implications for Humanitarian Response, Humanitarian Policy Group Overseas Development Institute, HPG Report 25 (2007), p. 3, www.odi.org.uk/HPG/ papers/hpgreport25.pdf. See note 1, p. 11. See Tom de Bruyn and Johan Wets, Remittances in the Great Lake Region, IOM Migration Research Series, no. 25, (Katheolieke Universiteit Leuven, 2008): pp. 19-20, www.iom.int/jahia/Jahia/cache/offonce/ 18
19
20 21 22
6 7
286
&pagePK=64133601&contentMDK=21450605&piP K=64129599. 23 24 25 Telephone interview with Maria Saenz, March 26, 2008. Telephone interview with Cindy Horst, March 13, 2008. Shelly Dick, Responding to Protracted Refugee Situations: A Case Study of Liberian Refugees in Ghana, UNHCR Evaluation and Policy Analysis Unit (July 2002), www.unhcr. org/research/3b850c744.html. See Helen Young, Livelihoods, Migration and Remittance Flows in Times of Crisis and Conict: Case Studies for Darfur, Sudan, Humanitarian Policy Group, Overseas Development Institute, HPG Background Paper (September 2006), www.odi.org.uk/HPG/papers/BG_ Remittances_Sudan.pdf. See also, Helen Young, Abdalmonium Osman and Rebecca Dale, Darfurian Livelihoods and Libya: Trade, Migration, and Remittance Flows in Times of Conict and Crisis, International Migration Review, 41, no.4 (December 2007): pp. 82649. Helen Young, Abdalmonium Osman, and Rebecca Dale. Darfurian Livelihoods and Libya: Trade, Migration, and Remittance Flows in Times of Conict and Crisis. International Migration Review, 41, no.4 (Winter 2007). Ibid. Ibid. Stephanie Riak Akuei, Remittances as Unforeseen Burdens: The Livelihoods and Social Obligations of Sudanese Refugees, Global Commission on International Migration, Global Migration Perspectives, no.18 (January 2005): pp. 6-7, www.gcim.org/attachements/GMP%20 No%2018.pdf. See note 12, pp. 12-13. Georgetown University Institute for the Study of International Migration, Research Consortium on Remittances in Conict and Crises, www12.georgetown.edu/sfs/isim/ pages/RCRCC.html. Kevin Savage and Paul Harvey, eds., Remittances during Crises: Implications for Humanitarian Response, Humanitarian Policy Group Overseas Development Institute, HPG Report 25 (2007): p. 41, www.odi.org.uk/HPG/ papers/hpgreport25.pdf. DFID, Sending Money Home: A Survey of Remittance Products and Services in the United Kingdom (March 2005), www.dd.gov.uk/pubs/les/sendmoneyhome.pdf. Mercy Corps, Partnering for Our World, Our Family (September 12, 2007), www.mercycorps.org/aboutus/ partners/1820 (accessed February 2009).
26
27
28 29 30
31 32
33
34
35
287
Tools and Approaches

The tools and approaches provided in this section are designed to follow the guidance of the Conceptual Framework and accompany the steps recommended in each of the eld manual chapters. The following pages provide guidance to practitioners assessing the appropriateness of a potential livelihoods intervention based upon the displacement context; the needs and priorities of the target population; information about market and labor market demand; their agencys capacity to develop and implement such an intervention; and monitoring and evaluation processes to understand program impact. The resources have been compiled and developed from work of the Womens Refugee Commission and from various organizations that have designed strong tools for use in the eld. A number of helpful resources that have not been included in detail are referenced following each of the tools. Further resources are included at the end of this section. The tools and approaches in this section are as follows: Situation Analysis Conict Analysis Participatory Needs Assessment Participatory Rural Appraisal Market Assessment Value Chain Analysis Labor Market Assessment Organizational Capacity Assessment Monitoring and Evaluation
288
SITUATION ANALYSIS
Situation Analysis
Action for the Rights of Children denes situation analysis as the process of assessing a complex situation within its wider context, systematically gathering information, identifying the main problems and needs within a refugee population, identifying the principal resources contained within that population, and analysing the information gathered in order to facilitate the process of planning in a systematic, strategic and integrated manner.1 Situation analysis differs from the narrower concept of needs assessment in that it has a broader scopein its focus on the wider context and in identifying refugee capacities and resources as well as problems and needs.2 In order to frame the context for a livelihoods intervention, it is critical to conduct a situation analysis that gathers population proles and data from existing secondary sources and involves the participation of displaced populations. Action for the Rights of Children recommends that practitioners conduct a situation analysis as the initial step of a livelihoods intervention. Participants in a situation analysis should include the UN High Commissioner for Refugees (UNHCR) and other UN agencies, international nongovernmental organizations (INGOs), nongovernmental organizations (NGOs), community-based organizations (CBOs), the host government and government of the country of origin, local communities in the host country, and refugees and internally displaced persons (IDPs).3 While situation analysis should be an ongoing process, it should be undertaken at the onset of an emergency as well as during the following strategic stages: toward the end of the emergency phase when large-scale repatriation is being considered when there is a new inux of refugees or major program changes when it becomes clear that refugees are likely to spend an extended period of time in a camp.4
289
Important Principles in Conducting a Situation Analysis Situation analysis requires collecting good and reliable information. In an emergency, it is not possible to plan programs on the basis of complete or entirely accurate information, but the following will help increase the reliability of information gathering:5 Information gathering needs to be systematicthe attempt to develop understanding by examining a situation fully and not from a single, personal viewpoint. A mixture of quantitative and qualitative information gathering is usually required. It is important to avoid making assumptions without carefully checking them out. Information can be cross-checked (sometimes referred to as triangulation) by collecting information in different ways, for example: by using different tools and techniques by using information from different sources. By self-consciously identifying possible sources of bias and error, their effects can be minimized. It is important to guard against the possibility of refugees giving inaccurate information: for example, the fact of an unrelated child having been taken into the family may be concealed because of fears that his/her ration card might be withheld. Political considerations may also result in people giving false information. Making the process of assessment transparent (i.e., sharing your observations, perceptions and understandings) with the refugees helps to avoid the dangers of missing certain key items of information, and of misinterpretation of the data. Certain ethical principles should be upheld. These include: obtaining parental or family consent before interviewing children
preserving condentiality of personal or sensitive information taking care not to raise peoples expectations unrealistically that assessment will result in particular benets to them.6 Situation analysis in UNHCR comprises three closely interlinked phases:7 Phase 1: Analysis of existing information All available information on a particular situation concerning refugees, internally displaced persons, and/or returnees is gathered from a wide range of internal and external sources, including Country Reports, Annual Protection Reports, the proGres database (Project Prole), and Standards and Indicators Reports, as well as from political and legal documents and reports produced by other organizations/partners. The information thus collected should be reviewed from an age, gender, and diversity perspective.8 Phase 2: Participatory assessment Structured discussions are organized with refugee women, girls, boys and men of all ages and backgrounds, providing them with an opportunity to explain the protection risks they face and to participate as partners in the design of programmatic responses to issues affecting their lives.9 Phase 3: Participatory planning A planning meeting takes place to prepare the annual Country Operations Plan for submission to UNHCR headquarters. Participants include donors, host government authorities, implementing and operational partners and refugees.10 Together, they review and analyze the information available and develop the operational objectives at the country level.11
290
SITUATION ANALYSIS
Figure: UNHCR Situation Analysis12
Phase 1
Analysis of existing information
Socioeconomic, political, and legal context Population proledemographics and diversity Standards and Indicators Reports Country Reports Annual Protection Reports Other agency/partner reports
Phase 2
Participatory assessment
Structured dialogue with refugee/internally displaced/returnee women and men, girls and boys of different backgrounds to: identify protection risks and assistance needs identify root causes of protection risks identify community capacities and resources discuss solutions and priorities
Phase 3
Participatory planning Government counterparts, implementing and operational partners, and refugee/internally displaced/returnee representatives to: review and analyze information gathered dene protection strategies design programmes with: protection-focused objectives community-based activities age, gender, and diversity indicators
Outputs
Protection strategy Annual Protection Reports Country Reports Detailed project submissions Subagreements with partners Country Operations Plan
Outcomes
Results-based management Rights-based and community-based approaches Age, gender, and diversity analysis
291
The UNHCR gure above demonstrates data collection from existing secondary sources, coupled with participatory assessment and participatory planning and the resulting outputs and outcomes. For economic programming, situation analysis will include available data on jobs and markets; the condition of necessary infrastructure; access to markets; a prole or mapping of the population; interviews with key informants; and a participatory assessment with the target population, all of which are consolidated and analyzed to inform appropriate programming.
KEY REFERENCES
Action for the Rights of Children. Tools: Situation Analysis. 1999. www.unhcr.org. UNICEF. Situation Analyses for various countries. www.unicef.org/sitan/index_43351.html. UNICEF. The Situation Analysis Function. www. unicef.org/sitan/index_43348.html.
NOTES
1 2 3 4 5 6 7
Action for the Rights of Children, Tools: Situation Analysis (1999): p. 14.
Ibid. Ibid. Ibid., pp. 14-15. Ibid., p. 16. Ibid., pp. 16-17. See UNHCR, The UNHCR Tool for Participatory Assessment in Operations (May 2006): pp. 2-3, www.unhcr.org/publ/PUBL/450e963f2.html. Ibid., p. 2. Ibid., pp. 2-3. The term refugee is used here to refer to all people of concern in a given situation. See note 8, p. 3. Ibid., pp. 4-5.
8 9 10 11 12
292
CONFLICT ANALYSIS
Conict Analysis
Livelihood interventions in settings of conict or post conict will have positive and/or negative impacts. As with all humanitarian aid, livelihoods programming is never neutral.1 In designing and implementing a livelihoods intervention, it is critical to assess whether the program may perpetuate or renew the conict, perpetuate the war economy or, alternatively, mitigate the conict and help promote or build peace. Practitioners should conduct a conict analysis to understand the security context; the effect the conict has had on the local and displaced populations; the vulnerabilities displaced people are exposed to; and the appropriateness and sustainability of various livelihood interventions, given the conict and security situation. The World Banks Conict Analysis Framework (CAF)2 was designed to analyze conict at the country level, and includes a risk screening process to determine whether a conict analysis should be conducted, based upon a number of indicators. 1. History of conict. If a country has experienced violent conict in the past 10 years, there is a high possibility of recurrence of conict. 2. Income per capita. Countries with low per capita Gross National Incomes are more likely to experience violent conict. 3. Primary commodity exports. Countries with a high dependence on primary commodity exports face a higher risk of experiencing violent conict.
293
4. Regime instability. Transformation of state structure. Restructuring of the state at frequent intervals signals serious instability and the likelihood that violence may be employed to bring about systemic changes. Political instability. Political instability may occur in democratic and nondemocratic societies. It can take the form of disregard for civil liberties and political rights and/or a breakdown of law and order. In terms of their link to violent conict, these two aspects can occur in tandem or independently. 5. Militarization. Countries may have high defense spending as a share of gross domestic product (GDP), and large armies as proportion of their population. Militarization may also include the availability of arms and the existence of armed nonstate actors, such as rebel groups, local militias and warlords. These factors suggest the likelihood of emerging or escalating violent conict. 6. Ethnic dominance. When one ethnic group controls state institutions and/or the economy, there is a high risk of outbreak of violent conict. 7. Active regional conicts. Regional conicts are likely to have a cascading effect, such that the internal stability of a country is threatened, increasing the probability of violent conict. 8. Youth employment. Youth employment (especially for males) can have a critical bearing on the probability of violent conict. Lack of jobs and opportunities tend to create frustration, making unemployed youth prime candidates for recruitment by militant organizations with funds and arms at their disposal.3 The World Banks Conict Analysis Framework identies some of the drivers of conict. In a similar vein, the Department for International Development (DFID) in the United Kingdom suggests taking into account multiple sources of tensionsecurity, political, economic and social
all of which have bearing on the probability and dimensions of conict. DFID provides examples of the sources of tension and conict that should be considered when conducting a conict analysis.4 Security Security forces have limited capacity and are weakly controlled Human rights abuses from security forces/armed groups High levels of military spending Presence of nonstate military actors Poorly controlled/contested borders Unstable regional/international context (e.g., political changes in neighboring countries) Legacy of past conict Proliferation of light weapons Political Weakly institutionalized/unrepresentative political system Lack of independent judiciary Lack of independent media and civil society Corruption Weak political parties Lack of popular participation, and gender imbalance, in political and governance processes Flawed election processes Political exploitation of ethnic/religious differences Systems for managing conict weakly developed Weak and uncoordinated international engagement Destabilizing role by diaspora populations Economic Economic decline: trends in poverty, unemployment, ination, food security, access to social welfare Widening economic disparitiesgrowing
294
CONFLICT ANALYSIS
Gini coefcient[1]based on regional or ethnic divisions Macroeconomic instability Shift to destabilizing external investment patterns or destabilizing international economic policies Increasing competition over shared resources Growth in black market/illegal activities and parallel nonformal economies Development of war economy
What structural factors can be regarded as promoting peace (e.g., low levels of corruption, functional social safety nets, independent judiciary, and military forces under civil democratic control)? What is the governments institutional capacity to respond?7 Analyzing Actors Who are the key actors (individuals, groups and institutions)? What are their interests? What are their power bases and resources? What are the roles of men and women in this conict situation? What are their specic needs, interests, and potential strengths?8 Analyzing Conict Dynamics What events, actions, and decisions can be identied as actual or potential trigger factors? What consequences have these trigger factors had or will they have on structural causes and key actors? What is/are the main mechanism(s) driving the conict: for example, structural instability, struggles for power and inuence, security dilemmas or a combination of the above?9 Through analysis of the risks and drivers of conict as well as the sources of tensioncoupled with an analysis of the structures, actors and dynamics of conictlocal and regional stability and security can be determined. On the basis of this, NGO practitioners can identify whether programming is advisable and, if so, which economic interventions are possible and likely to be sustainable in the given context.
Social Social exclusion Legacy of unresolved ethnic conict Absence of crosscutting social and civil society organizations Tensions over language, religion, ethnicity Failure of dispute resolution mechanisms/ decreasing legitimacy of customary authorities, such as national and local government bodies5 Finally, the Swedish International Development Cooperation Agency (SIDA) has developed guidance to understand the context of actual conict and how this can inform long-term planning.6 Conict analysis at the strategic level should address the following questions: Analyzing Structures What are the key sources of tension and the underlying structural causes that could lead to structural instability in the society (e.g., poverty, economic inequality, poor governance, lack of democracy, uncontrolled spread of small arms, human rights violations, and scarcity of natural resources)?
The Gini coefcient is a measure of statistical dispersion most prominently used as a measure of inequality of income distribution or inequality of wealth distribution. It is dened as a ratio with values between 0 and 1: A low Gini coefcient indicates more equal income or wealth distribution, while a high Gini coefcient indicates more unequal distribution. 0 corresponds to perfect equality (everyone having exactly the same income) and 1 corresponds to perfect inequality (where one person has all the income, while everyone else has zero income).
295
KEY REFERENCES
Africa Peace Forum (APFO), Center for Conict Resolution (CECORE), Consortium of Humanitarian Agencies (CHA), Forum on Early Warning and Early Response (FEWER), International Alert and Saferworld. Conict Sensitive Approaches to Development, Humanitarian Assistance and Peace Building: Tools for Peace and Conict Impact AssessmentResource Pack. Conict Analysis, Chapter 2. www.conictsensitivity.org/resource_pack.html. Department for International Development (DFID). Conducting Conict Assessments: Guidance Notes. January 2002. www.dd.gov.uk/pubs/les/ conictassessmentguidance.pdf. Swedish International Development Cooperation Agency (SIDA). Manual for Conict Analysis. SIDA Division for Peace and Security through Development Cooperation, Methods Document, January 2006. www.sida.se/shared/jsp/download. jsp?f=SIDA4334en_Web.pdf&a=3351. USAID. Conducting a Conict Assessment: A Framework for Strategy and Program Development. April 2005. http://rmportal.net/tools/conict-assessment-andmanagement-tools/higherlevel_conictassmt/view. . Conict-sensitive Approaches to Value Chain Development. USAID microREPORT no. 101, May 2008. http://www.international-alert.org/ publications/pub.php?p=382. World Bank. The Conict Analysis Framework (CAF): Identifying Conict-related Obstacles to
Development. World Bank Conict Prevention and Reconstruction Unit, Social Development Department Dissemination Notes, no.5, October 2002. http://www-wds.worldbank.org/external/default/ WDSContentServer/WDSP/IB/2003/03/29/000 094946_03031804015523/Rendered/PDF/multi0page.pdf.
NOTES
1 See CDA Collaborative Learning Projects, The Do No Harm Handbook (The Framework for Analyzing the Impact of Assistance on Conict), November 2004, www.cdainc. com/dnh/docs/DoNoHarmHandbook.pdf. World Bank, The Conict Analysis Framework (CAF): Identifying Conict-related Obstacles to Development. World Bank Conict Prevention and Reconstruction Unit, Social Development Department Dissemination Notes, no.5 (October 2002), www-wds.worldbank.org/external/ default/WDSContentServer/WDSP/IB/2003/03/29/000 094946_03031804015523/Rendered/PDF/multi0page. pdf. Ibid., p. 2. Department for International Development (DFID), Conducting Conict Assessments: Guidance Notes (January 2002), www.dd.gov.uk/pubs/les/conictassessmentguidance.pdf. Ibid., p. 12. Swedish International Development Cooperation Agency (SIDA), Manual for Conict Analysis, SIDA Division for Peace and Security through Development Cooperation, Methods Document (January 2006), www.sida.se/shared/ jsp/download.jsp?f=SIDA4334en_Web.pdf&a=3351. Ibid., p. 10. Ibid., p. 11. Ibid., p. 12.
3 4
5 6
7 8 9
296
PARTICIPATORY NEEDS ASSESSMENTS
Participatory Needs Assessments

All livelihood interventions should be informed by a participatory needs assessment that takes into account the diverseand sometimes multiplelivelihood strategies that displaced households develop in order to meet their needs. The needs, priorities, goals and concerns of the displaced community should be expressed directly by the members of the community, and programming should reect their needs and concerns. This leads to more effective programming while also building trust between program participants and aid agencies. One example of a participatory needs assessment is the Household Economy Approach (HEA), developed by Save the Children UK, which: is a livelihoods-based framework for analyzing the way people obtain access to the things they need to survive and prosper. It helps determine peoples food and non-food needs and identify appropriate means of assistance, whether short-term emergency assistance or longer term development programmes or policy changes. It is based on the principle that an understanding of how people make ends meet is essential for assessing how livelihoods will be affected by wider economic or ecological change and for planning interventions that will support, rather than undermine, their existing survival strategies.1 HEA is an analytical framework, not an information collection method. It is meant to analyze: 1. how people in different social and economic circumstances get the food and cash they need; 2. their assets, the opportunities open to them and the constraints they face; and 3. the options open to them at times of crisis.2 Not only does understanding the needs and survival strategies of refugees and IDPs inform more effective programming, it also reveals areas of vulnerability and harmful coping strategies.
297
A participatory needs assessment should consult, where possible, all members of the displaced communityincluding women, young people, separated youth, older people, people with disabilities and those living with infectious diseases, and ex-combatantswhether in camps or settlements, or dispersed in urban areas. Community leaders should also be consulted. It is critical to conduct needs assessments in a manner that allows participants to speak freely, so it may be necessary for women and men to be interviewed separately or in condential settings. Participatory needs assessments generally include focus group discussions, divided by age and gender to identify differing needs, as well as in-depth individual interviews and household interviews. The gender of the interviewer(s) should be taken into consideration, as it may inuence participants responses. When consulting members of the displaced community, ask: How has the conict/disaster affected your households access to food, health care and sources of income, or your ability to send children to school? Are you able to meet your households basic needs with the food and income accessible to you? What strategies are you using to cope with food and income insecurity? Are these strategies sustainable? Do you believe the coping strategies you are employing are putting you at risk or increasing your vulnerability to violence, abuse or exploitation? What are your greatest needs? Are you able to meet some of these needs? Which ones continue to be unmet? If you had access to income, what would you most likely spend it on? What food and nonfood items would help to meet your households needs?
What household assets would contribute to your households well-being? How has displacement affected your livelihood? Do you have access to inputs (such as tools, equipment and seeds) necessary for you to continue your work? Do you see a demand for your skills in the displaced or local communities? What is the division of labor within your household? What responsibilities do the women and girls in your household have (e.g., cooking, cleaning, child care, caring for elders or those who are ill)? How much time must they spend on these responsibilities? Does this affect their ability to work outside the household? Has displacement or the lack of access to stable livelihoods led to an increase in domestic or gender-based violence? If female members of the household have become the primary income earners, is there an increase in violence against them due to the shifting of so-called traditional gender roles? Do women and men have the same access to existing services? Do women and men have the same decisionmaking power within the household? What are the special needs and abilities of older people and individuals with disabilities and illnesses that will enable them to achieve their livelihood strategies? What are the unique needs of ex-combatants reintegrated into the community in striving to achieve their survival strategies? Are they facing distinct obstacles in meeting their needs or accessing services? What economic programs do displaced people believe would best meet their needs? What skills and resources do the displaced possess that can help them become more economically independent? Questions for community leaders should include: What members of the community are
298
PARTICIPATORY NEEDS ASSESSMENTS
particularly vulnerable or have signicant needs? What are the challenges they are facing? What kinds of assistance do these groups need? How do these individuals/households meet their needs? What coping strategies are they employing? Are these coping strategies putting them at risk for violence, abuse or exploitation?
What were their livelihoods prior to displacement? Which economic programs might best serve the community?
See Save the Children table3 below, Steps in HEA analysis with description and rationale.
Table 2. Steps in HEA analysis with description and rationale Steps in HEA What is it?
Step 1: Livelihood Zoning A deliniation of areas within which people share broadly the same patterns of livelihood A grouping of people based on local denitions of wealth and a quantifcation of assets.
Why is it needed?
It provides a livelihoods-based sampling frame; allows you to target assistance geographically; and to customise indicators for monitoring systems. It disaggregates the population into common access groups, which allows you to see important differences in households vulnerabilities to different shocks and to estimate numbers of people who will be affected by different changes. It enables comparisons to be made across wealth groups and livelihood zones, facilitiating prioritisation of resources. It also provides a starting point for outcome analysis. It allows you to mathematically link the shock (or positive change) to each relevant livelihood strategy. It helps you to determine how to support peoples own efforts, and to provide external assistance before households turn to damaging strategies; it highlights relevent indicators to monitor. It clearly predicts whether and when assistance is needed to help people survive and/or protect their livelihoods. It also models the potential benecial effects of proposed policies or programs.
BASELINE
Step 2: Wealth Breakdown
Step 3: Analysis of Livelihood Strategies
A categorisation and quantication of peoples sources of food and income, and their expenditure patterns, using a common currency. Translation of hazard or other shocks into economic consequences at household level. Analysis of the ability of households to respond to the hazard.
Step 4: Problem Specication
OUTCOME ANALYSIS
Step 5: Analysis of Coping Capacity
Step 6: Projected Outcome
Prediction of the effects of the hazard in relation to a survival and livelihoods protection threshold.
299
KEY REFERENCES
CARE USA. Household Livelihood Security Assessments: A Toolkit for Practitioners. July 2002. www.proventionconsortium.org/themes/default/pdfs/CRA/HLSA2002_meth.pdf. Darcy, James, and Charles-Antoine Hofmann. According to Need? Needs Assessment and Decision-making in the Humanitarian Sector. Humanitarian Policy Group, Overseas Development Institute HPG Report 15, September 2003. www.odi.org.uk/resources/details. asp?id=271&title=humanitarian-needs-assessment-decisionmaking. FAO. The Livelihood Assessment Tool-kit: Analysing and Responding to the Impact of Disasters on the Livelihoods of People. First edition, February 2009.
www.reliefweb.int/rw/lib.nsf/db900SID/JBRN7PCKH7?OpenDocument.
Save the Children and FEG Consulting, Regional Hunger and Vulnerability Programme. The Practitioners Guide to the Household Economy Approach. Johannesburg, February 2008.
www.feg-consulting.com/resource/practitioners-guide-to-hea/0%20 Cover%20pages%20and%20Introduction.pdf.
NOTES
1 Save the Children and FEG Consulting, Regional Hunger and Vulnerability Programme, Practitioners Guide to the Household Economy Approach, Johannesburg (February 2008): p. 2, www. feg-consulting.com/resource/practitioners-guide-to-hea/0%20 Cover%20pages%20and%20Introduction.pdf. Ibid., p. 2. Ibid., p. 7
2 3
300
AN APPROACH TO PARTICIPATORY RURAL APPRAISAL
An Approach to Participatory Rural Appraisal

The World Bank provides some guidance on approaches to participatory rural appraisal (PRA). It denes PRA as: a label given to a growing family of participatory approaches and methods that emphasize local knowledge and enable local people to make their own appraisal, analysis, and plans. PRA uses group animation and exercises to facilitate information sharing, analysis, and action among stakeholders. Although originally developed for use in rural areas, PRA has been employed successfully in a variety of settings. The purpose of PRA is to enable development practitioners, government ofcials, and local people to work together to plan context-appropriate programs.1 Participatory rural appraisal evolved out of rapid rural appraisal (RRA), a pro-poor approach meant to reduce costs and appraisal time. However, with RRA, information is elicited and extracted by outsiders, whereas PRA seeks the involvement of the community.2 Rapid market appraisal (RMA), another approach, is an extension ofor complement toPRA, using some of the same techniques as PRA, and is meant to quickly gain and analyze information about market subsectors, constraints and opportunities. Participatory rural appraisals do not necessarily have to be conducted in rural or remote areas. The World Banks key tenets of PRA include:3 Participation. Local peoples input into PRA activities is essential to its value as a research and planning method and as a means for diffusing the participatory approach to development. Teamwork. To the extent that the validity of PRA data relies on informal interaction and brainstorming among those involved, it is best done by a team that includes local people with perspective and knowledge of the areas conditions, traditions, and social structure and either nationals or expatriates with a complementary mix of disciplinary backgrounds and experience. A well-balanced team will
301
represent the diversity of socioeconomic, cultural, gender, and generational perspectives. Flexibility. PRA does not provide blueprints for its practitioners. The combination of techniques that is appropriate in a particular development context will be determined by such variables as the size and skill mix of the PRA team, the time and resources available, and the topic and location of the work. Optimal Ignorance. To be efcient in terms of both time and money, PRA work intends to gather just enough information to make the necessary recommendations and decisions. Triangulation [synthesizing data from multiple sources]. PRA works with qualitative data. To ensure that information is valid and reliable, PRA teams follow the rule of thumb that at least three sources must be consulted or techniques must be used to investigate the same topics.4 Participatory Rural Appraisal Tools and Techniques The rst step in PRA is developing an understanding of the local displacement context, which will allow practitioners to design the most effective activities. For example, if the community is highly segregated by gender, interview groups may need to be divided by gender. If a large number of community members are illiterate, pictures may be a central technique. Second, PRA is often most effective when conducted at a relevant location so that real world examples can be readily accessed. For example, in a community that is interested in developing a project based on crop production, it may be most effective to hold meetings, focus groups and interviews in a post-harvest facility or eld. Third, the heart of PRA is community participation and teamwork; therefore, the facilitators should strive to be as unimposing as possible and allow the community to guide the techniques. The Institute for Global Environmental Strategies (IGES) recommends the inclusion of the following techniques in PRA:5
1. Secondary data reviews: for example, books, les, reports, news articles, maps. 2. Observation: direct and participant observation, wandering, DIY (do-it-yourself ) activities. 3. Semistructured interviews: this is an informal, guided interview session, where only some of the questions are predetermined and new questions arise during the interview, in response to answers from those interviewed. The interviewees may be: (1) individual farmers or households; (2) key informants; (3) group interviews; (4) community meetings; or (5) chains (sequences) of interviews. The interview is conducted by a multidisciplinary team of 2-4 persons and the discussion is led by different people on different occasions. 4. Analytical games: quick games to nd out a groups list of priorities, performances, ranking, scoring, or stratication. 5. Stories and portraits: for example, colorful descriptions of the situation, local history, trend analyses. 6. Diagrams: including maps, aerial photos, transects,6 seasonal calendars, Venn diagrams,7 ow diagrams, historical proles, ethno-history, timelines. 7. Workshops: Locals and outsiders are brought together to discuss the information and ideas intensively.8 The World Bank notes that mapping and modeling are good techniques to start with because they involve several people, stimulate much discussion and enthusiasm, provide the PRA team with an overview of the area, and deal with noncontroversial information.9 Individual interviews may be better left until the end of the PRA as a way to follow up on the reasons for differences between preferences within the community.10
302
AN APPROACH TO PARTICIPATORY RURAL APPRAISAL
KEY REFERENCES
Bhandari, Bishnu. Participatory Rural Appraisal (PRA), Module 4. Institute for Global Environmental Strategies (IGES), Draft, 2003. http://74.125.93.104/ search?q=cache:GOXmZEQ6ZSkJ:www.iges.or.jp/ en/phase2/ee/pdf/report7.pdf+Bhandari,+Bishnu.+P articipatory+Rural+Appraisal+(PRA),+Module+4.+I nstitute+for+Global+Environmental+Strategies&cd =1&hl=en&ct=clnk&gl=us. Chambers, Robert. Rural Appraisal: Rapid, Relaxed and Participatory. Institute of Development Studies, University of Brighton IDS Discussion Paper 311, 1992. http://community.eldis.org/robertchambers/ Blog/Rural-appraisal--rapid--relaxed-and-participatory--1992. Helvetas, Swiss Association for International Cooperation. Clients First! A Rapid Market Appraisal Tool Kit: Theoretical Background and Experiences from Various RMA events. www.helvetas.ch/ global/pdf/english/Professional_competences/ Documented_experiences/resources/Clients_First_ lowres.pdf. World Bank. The World Bank Participation Sourcebook: Appendix I: Methods and Tools. www. worldbank.org/wbi/sourcebook/sba104.htm.
NOTES
1 World Bank, The World Bank Participation Sourcebook: Appendix I: Methods and Tools, www.worldbank.org/wbi/ sourcebook/sba104.htm. Chambers, Robert, Rural Appraisal: Rapid, Relaxed and Participatory, Institute of Development Studies, University of Brighton IDS Discussion Paper 311, 1992, p. 1, http://community.eldis.org/robertchambers/Blog/Ruralappraisal--rapid--relaxed-and-participatory--1992. See note 1. Ibid. Bhandari, Bishnu, Participatory Rural Appraisal (PRA), Module 4, Institute for Global Environmental Strategies (IGES), Draft, 2003, p. 12, http://74.125.93.104/ search?q=cache:GOXmZEQ6ZSkJ:www.iges.or.jp/en/ phase2/ee/pdf/report7.pdf+Bhandari,+Bishnu.+Participato ry+Rural+Appraisal+(PRA),+Module+4.+Institute+for+Gl obal+Environmental+Strategies&cd=1&hl=en&ct=clnk& gl=us. Transects divide by cutting across any area or line transversely. A Venn diagram typically consists of overlapping circles representing information that can be used to understand their relationship to one another. See note 5. See note 1. Ibid.
3 4 5
6 7
8 9 10
303
Market Assessment
It is essential to conduct a market assessment before you select and develop the most appropriate livelihoods intervention. Market assessments identify supply and demand for goods and services, the viability of occupations and enterprises, and market capacities and trends in the local community. A number of economic, social, cultural, ethnic, political and environmental factors that inuence the market at the local, national and international level must be identied. Depending upon the time and resources available to conduct a market assessment, a more in-depth assessment can be conducted or a rapid market assessment can be used to gain the essential information needed in order to decide upon and proceed with a livelihoods intervention. A rapid market assessment should identify whether there are potential sustainable economic activities for small-scale producers in the target area, and what these are.1 Market assessments should utilize observation and interviewing techniques. Careful observation of local economic activity should occur through visits to town centers, central business districts, local markets and key transport/trading hubs, and interactions between local sellers and producers.2 Practitioners conducting market assessments should also interview: traders, producers and service providers; state and local government ofcials; and displaced and local members of the community, who may be attuned to local market demands. It is important to note that discussions about market demand and the potential for an increased supply of goods and services can be threatening to actors already involved in the market. Therefore, when consulting various actors, be sensitive to how your questions may affect a participants responses. In conict or post-conict settings, be aware of the potential for the presence of market actors (buyers, sellers, suppliers) who may be assisting or beneting from the conict economy, and who, in fact, may have been contributors to conict or displacement.
304
MARKET ASSESSMENT
A market assessment must ascertain: How developed are the regions around refugee and IDP camps and settlements? How are market demands changing? Seek to understand the rate of market change, particularly in a conict or post-conict setting. Transaction costs may be highly inated immediately following a conict, yet they tend to decrease as stability returns and infrastructure is rebuilt. What sectors are growing or in need of further development (e.g., industrial, agricultural, service)? What trends are emerging that may lead to new markets? How can these be anticipated and leveraged? What gaps exist in the market in terms of products and services? What kinds of investment, infrastructure and inputs are required to develop growing or reemerging industries? Are public-private partnershipsamong government, NGOs and local, national and multinational companiescreating local economic development projects? Will these projects require a labor force? Is there recent or upcoming private sector investment that will require a labor force? Which particular skills or experience will be needed? How can current and planned development activities make use of local experience and institutions that will keep the benets of economic development local? Is there any market instability? In what ways is the market vulnerable to shocks, seasonality and changing trends? Is the market unstable due to recent or ongoing conict? What role does ongoing or recent conict have on local economic activity? How are people vulnerable as a result of conict? Do conict and insecurity restrict the movement of people and products, and limit market access? What actors are involved in the conict economy?
What are the effects of any ination and deation on the local market? Are there any risks of market failure due to impacts such as large regional players and cheap imports? Are there government policies or restrictions that restrict market trade, such as taxes or tariffs? LOCAL MARKET ASSESSMENT OBSERVATION3 How dynamic is trade in the local market? What are the visible activities occurring in the market? What goods are produced within the area? What types of goods and services are traded? What goods are most in demand? What goods are overabundant? What primary commodities, processed products and seminished goods are in demand by large retailers, wholesalers or processing companies in the region? Can the market withstand additional producers without a signicant impact on prices? What goods are imported? What regions and/or countries are they coming from? How are goods transported in and out of the market? Is the infrastructure sufcient to allow vehicles to pass through the area and/or over the terrain? What sectors are the most competitive? What sectors are the least competitive? Which stalls or businesses have the most customers? What goods and services do they sell? Which stalls or businesses have the fewest customers? What goods and services do they sell? What impact does location within the market seem to have on the success of businesses? What actors participate in the trade of goods and services? Are traders working alone or collectively? Are traders locally based or are they from outside the community? What types of social services are available in the
305
area (such as health clinics, schools, counseling services, transportation)? What role do women play in the market? Do women own businesses? Are girls and youth present in the market? What roles do they play? Questions for traders, producers and service providers include:4 How long have you been doing this activity? Where did you learn your skills? Where do you get necessary inputs (e.g., tools, seeds, equipment) for your goods or services? Can you access inputs locally or must they be imported? Do you have any constraints to the production of your goods? Are there any problems with the market supply chain? What are the main problems you face in your activities and in the market? How do you secure tenure for your stall/stand/ market space? What are the barriers to entry to selling at this market? What are the barriers to purchasing or bartering goods in this market? Are there parallel or underground markets that operate alongside this one? If so, what is traded in these markets? How do conict and displacement affect the market and the activities that take place here? What is the age, gender, ethnic/social/religious makeup of people who sell here? Of people who buy here? Who owns the market? Is the market protected? By whom? What causes price uctuations (e.g., seasons, insecurity, climate variability, conict)? What currencies are accepted at the market? Is trade conducted through barter or cash?
Do traders give credit? If no, why not? If so, to whom? (To men, women, youth, older people? To particular ethnic, social, political or religious groups? To displaced or nondisplaced community members? To relatives?) What goods are being taken out of town to be sold or traded? How many customers do you have per day? What do you do with the prot you earn? Are there goods and services in the market for which you will readily barter your goods? If you had access to credit, what would you do with it? Would it be useful? Have you ever considered increasing the size of your business? Is there a market for expansion of your product? Does the rest of your household assist in the business activity? Do local producers have sufcient labor? What types of labor and skills are most in demand? For women: How does producing for or participating in the market affect your household and care giving responsibilities? Does anyone else in your household help you? When consulting state and local government ofcials, ask:5 What are the major economic activities in your community? How do people access resources? What are the main raw materials produced in this community? Are people doing any processing of raw materials here? If not, where are the raw products being processed? Are there any goods or services that have are available in excess but have little demand? Is there a shortage of goods and services in the area? What are they? What new and emerging markets do you anticipate will be in demand? What are the areas of greatest competition in the market?
306
MARKET ASSESSMENT
Which commodities are traded with other communities? Is there transportation in the local community or in nearby communities that can bring people to and from the market? If not, how do people generally acquire the goods they buy or barter? How are goods transported to and from the market? How often does this occur? Are goods and services purchased, bartered or both? Which is more common? What sorts of skills do people need to participate meaningfully in economic activities? How are people acquiring these skills currently? Are vocational training programs in the area meeting labor market needs? Are there any governmental or nongovernmental programs in this community to support business development (such as livestock breeding programs, agricultural extension, microcredit, business/vocational training)? How are local government agencies supporting local economic growth (such as policy development, tax incentives or business support services)? Are there infrastructure development projects such as road and bridge construction and repairplanned that might increase market access? Are there any available sources of credit in the community? What policies or regulations are in place that impact the market? Are there labor laws in place? What rights do the displaced have to work? Do they have freedom of movement? What other policies might affect their access to economic activity? When seeking the participation of both the displaced and local communities, ask:6 What are your household needs? Where do you buy the following items: clothing, food, household goods, building materials for housing?
What types of goods do people in your community need to do their work? Are there goods or services that people need to be more productive that they cannot access? Why not? What are the most important goods in the market? Does the market provide an adequate diversity of goods and services? If community members are currently conducting business: What are the main sources of income? What are the strengths and weaknesses of those sources of income? Are there any barriers to entering the market? What are these barriers? Do youth, older persons, people with disabilities and illnesses, and ex-combatants face particular challenges in accessing or selling their goods and services at the market? What are their particular needs? Are women represented at the market? Do they face particular barriers in selling their goods and services in the market? What goods and services are women selling? What goods are men selling? What goods and services are being sold by both women and men? Are there any sectors where you think women would be successful? Which ones?
EMERGENCY MARKET MAPPING AND ANALYSIS (EMMA) TOOL

Oxfam Great Britain, the International Rescue Committee and InterAction are currently developing the Emergency Market Mapping and Analysis (EMMA) Tool, which will be available in 2010.7 EMMA seeks to address the need for an improved and rapid analysis of key market systems in emergency settings that will best respond to the needs of affected populations. The EMMA toolkit and guidance notes are meant to encourage and
307
assist frontline humanitarian staff in sudden-onset emergencies to better understand and make use of market systems. Gaining an understanding of market systems early in the emergency phase can help humanitarian agencies utilize markets for urgent nonfood items, agricultural inputs, fuel, tools and vital services; and improve labor market demand for displaced peoples livelihoods. EMMA will enable practitioners to: Make early decisions about the relative wisdom of different direct response options to assist affected households, such as cash-based interventions, in-kind distributions of imported or locally procured items; Assess opportunities for complementary indirect actions that will indirectly target households, such as rehabilitating key infrastructure and transportation, and providing grants to local businesses and/or technical expertise and business services; Reduce the risk of doing harm by reducing aid dependency, promoting long-term recovery and increasing the stability of local markets that provide essential goods, services and sources of income; Assist in monitoring the performance and accessibility of market systems by tracking both the continuing impact of a crisis and the outcomes of humanitarian programming on critical market systems; Improve the quality of disaster preparedness planning; Dene the requirements for more detailed market analysis. The EMMA structure will include the following steps: 1. Essential preparation for EMMA: background research; brieng and consultation; population targeting. 2. Selecting critical market systems: selection of market systems; and identication of key analytical questions.
3. Preliminary analysis: preliminary mapping of the market system; preliminary seasonal calendars; identication of key informant leads. 4. Fieldwork agenda, questions and format: eldwork agenda; interview structures and questionnaires; data sheets and interview formats. 5. Conducting interviews and other eldwork: interview methods and tips; data recording guidance; eldwork activities. 6. Mapping the market system: baseline market-system map; emergencyaffected market-system map; seasonal calendar; description of key features. 7. People: Gap analysis: comparative analysis of household economic proles (baselines and emergency-affected); analysis of priority needs and gaps. 8. Market systems situation analysis: analysis of impact on access, availability, conduct and performance; bottlenecks and constraints; supply and demand analysis; capacity of market-system to react. 9. Emergency response: response analysis logic; catalogue of emergency responses; cash feasibility tool; response options matrix; response recommendations framework. 10. Communicating results: reviewing ndings and interpretations with colleagues; presenting conclusions to wider audiences. The EMMA Tool is expected to be available in 2010 and should further assist practitioners to understand market dynamics, especially in emergency settings, and to design their economic interventions accordingly.
308
MARKET ASSESSMENT
KEY REFERENCES
International Rescue Committee Economic Recovery and Development Technical Unit. Sample Market Assessments. Internal document. Oxfam Great Britain. Producer Organisations: A Guide to Developing Collective Rural Enterprises. Annex 2: Rapid assessment of markets and producers. 2007, pp. 144-147. http://publications.oxfam.org.uk/oxfam/display. asp?K=9780855985752&TAG=&CID. Oxfam Great Britain, International Rescue Committee, InterAction, and Practical Action Consulting, with support from the US Ofce for Foreign Disaster Assistance. Emergency Market Mapping and Analysis (EMMA) Toolkit. Forthcoming (2010). The EMMA Tool will be available here in early 2010: www.emma-toolkit.info. SEEP Network. Market Development in Crisisaffected Environments; Emerging Lessons for Achieving Pro-poor Economic Reconstruction. 2007. www.seepnetwork.org/content/library/detail/5659. Womens Commission for Refugee Women and Children and Columbia University School of International and Public Affairs (SIPA). Market Assessment Toolkit for Vocational Training Providers and Youth. October 2008. www.womenscommission. org/pdf/ug_ysl_toolkit.pdf. World Food Programme. Market Analysis in Emergency Food Security Assessments: Guidelines on Market Situational Analysis & Forecast and Response Protocol. August 2007. http://documents.wfp.org/ stellent/groups/public/documents/manual_guide_ proced/wfp142137.pdf.
NOTES
1 Oxfam GB, Producer Organisations: A Guide to Developing Collective Rural Enterprises, Annex 2: Rapid Assessment of Markets and Producers, 2007, p. 144. Womens Commission for Refugee Women and Children and Columbia University School of International and Public Affairs (SIPA), Market Assessment Toolkit for Vocational Training Providers and Youth, October 2008, p. 25. See International Rescue Committee, Sample Market Assessments, IRC Economic Recovery and Development Technical Unit. See also, note 1, pp. 144-147. See also note 2, pp. 25-30. See note 2. Also, portions of this section where derived from International Rescue Committee, Sample Market Assessments, IRC Economic Recovery and Development Technical Unit. Portions of this section where derived from International Rescue Committee, Sample Market Assessments, IRC Economic Recovery and Development Technical Unit. See note 4. Oxfam Great Britain, International Rescue Committee, InterAction and Practical Action, EMMA: The Emergency Market Mapping and Analysis Tool, forthcoming. The EMMA Tool will be available here in early 2010: www. emma-toolkit.info.
6 7
309
An Approach to Value Chain Analysis

Conducting a value chain analysis is important for assessing how to add value to products and strengthen linkages with markets. Value chains look at the life cycle of a product from initial production through the chain of events and actors (including suppliers, manufacturers, traders) to nal markets. Mapping the value chain helps to create a systemic approach to livelihood program design; improve the potential of businesses and enhance their contributions; clarify market actors; and dene relationships among suppliers, producers and customers. It further enables practitioners to identify the most appropriate livelihoods intervention based on where the value chain can be strengthened and provides support services to participants with technological development, technical assistance, skills training, marketing or access to nancial services. A value chain analysis should attempt to: Understand the structure of the value chain; Determine whether the value chain relies on the supply of imported inputs or whether it uses local producers; Determine whether the value chain creates dependence on and/or exploitation of natural resources; Identify who has power within the chain: producers, consumers or commercial intermediaries? Do all actors enjoy equal bargaining power? Determine the risk that strengthening the value chain might reinforce or exacerbate socioeconomic inequalities or regional wealth and income disparities; Compile a map of the preconict value chain and compare it to the post-conict value chain; Identify value chain actors relationships with actors involved in the conict; Explore whether the value chain has helped reestablish links interrupted by conict; Identify any security risks associated with participation in the chain;
310
AN APPROACH TO VALUE CHAIN ANALYSIS
Identify applicable technological innovations and assess where these innovations will have the most impact, particularly on growing trends in markets. Mapping the Value Chain Mapping the value chain is an exercise in creating a visual map that identies all the graduated stages of and actors on the value chain. Industry selection should be based on the market potential, opportunities for leveraging the market or increased business opportunities to expand a product in high demand. Steps for mapping the value chain:1 1. Select an industry or subsector to study with the highest potential for growth a. Select an industry or subsector, using the ndings of the market assessment. b. Familiarize yourself with the business environment. 2. Research the industry or subsector a. Research should include participants, technologies, product ow and history. b. It is necessary to use all possible information about the functions of the value chain, such as: producers participants buyers social, cultural, ethnic, religious, political and economic environment nal markets supporting markets upgrading possibilities industry experts c. Researchers should ask the following questions: i. Where do you get raw materials?
ii. To whom do you sell your output? iii. What technologies do you use? iv. Have there been any major changes in this sector in the recent past? 3. Mapping the value chain a. Designing the map of the value chain is an important step in determining the functions of each participant, as well as understanding the markets and overall industry: i. Include functions, participants, technologies and nal markets. ii. Outline the functions and the market. iii. Map participants. iv. Draw product ows. v. Dene principal channels. A sample value chain map should include various components, such as: Inputs (tools, equipment, labor, capital, training and technical assistance) Production (using inputs to produce or process goods to add value) Transportation/distribution (transporting goods to buyers or distributors) Trade/market access (getting nished product(s) to local, national, regional and international end markets) (Examples of value chain maps completed by the American Refugee Committee are provided below.) The Making Markets Work Better for the Poor Project (M4P) has identied the following steps in mapping a value chain:2 Step 1: Mapping the core processes in the value chain. Distinguish a maximum of six to seven major processes that the raw material goes through before it reaches the nal consumption stage.3
311
Step 2: Identifying and mapping the main actors involved in these processes. Categorize value chain actors according to their occupation, legal status or ownership; the size or scale of their operation; poverty ranking; and/or location.4 Step 3: Mapping ows of products, information and knowledge. For products, simply follow the stages that the tangible product goes through, from raw material to nal product.5 Intangible ows, such as information and knowledge, might be more complicated to capture in a visual map. Be aware that these ows are often going in both directions, for instance: a trader tells a farmer about product requirements; a farmer gives the trader information about product availability.6 Step 4: Mapping the volume of products, numbers of actors and jobs. Identifying the volume of the product allows practitioners to have an overview of the size of the different channels within the value chain. It is also important to establish the number of actors and jobs within the value chain.7 Step 5: Mapping the geographical ow of the product or service. Start at the place of origin and see if you can map how the product travels from intermediary trader to wholesaler, retailer and nal consumer. Where possible, a map of the region can indicate the physical product ow and enable you to capture a dimension of the product ow, and show the locational or regional differences.8 Step 6: Mapping the value at different levels of the value chain. Mapping the monetary value throughout the chain can be measured in many ways: 1. Assess the value that is added by every step throughout the chain.9 2. Other indicators include revenue, cost structures, prot and return on investment.10
Step 7: Mapping relationships and linkages between value chain actors. Relationships can exist between different process steps (producer and trader) and within the same process (farmers to farmer).11 Relationships and linkages can be mapped by: 1. Spot market relationsor arms length relationshipswhich occur on the spot, whereby actors make a transaction (including negotiations on price, volume and other requirements) with the duration and scope of that specic transaction. 2. Persistent, ongoing network relations, which involve a higher level of trust and some level of interdependence. 3. Horizontal integration, in which one and the same organization (this can be an enterprise or a cooperative) deals with different processes throughout the value chain.12 Step 8: Mapping business services that feed into the value chain. Understand the sphere outside of the value chain, such as rules and regulations that are governing (parts of ) the value chain or business services that are feeding into the chain.13
312
AMERICAN REFUGEE COMMITTEE VALUE CHAIN MAP FOR LULU NUT SUBSECTOR MAPPING IN GULU, UGANDA14 Supermarkets, health food and specialty stores
Importers
Exporters
Relief oil recipients (IDPs and returnees)
Transporters NPA (Grade B oil purchase and distribution)
Package
Vertically integrated lulu works, regional and international exporters, formulators, packagers, distributors
Formulate Product
Local market, traditional oil
Oil Processing (CPU)
Village women processors
Womens groups supported by NGOs or religious org.
Standardized CPUs MEDIC/Lulu Works MEDIC Lulu/Works (nut purchase and distribution)
Collectors Village nut collectors
Nut collection centers
Key: = end market = potential link
CHANNEL 1 Domestic use and local market
CHANNEL 2 Regional market
CHANNEL 3 Integrated medium exporters
313
AMERICAN REFUGEE COMMITTEE VALUE CHAIN MAP FOR BEEKEEPING SUBSECTOR MAPPING, GULU, UGANDA15 Supermarkets, specialty retailers
Importers
Importers/distributors
Exporters
Transporters
Local individuals/ institutions
Moyo district buyers: individuals and institutions
Exporters (Kampala)
Packaging Farmers cooperative or microenterprise: (potentially) honey wine, candlemaking, soap, etc. Moyo Beekeepers Association who process (graded honey, honey wine, propolis tincture, body gel)
Processors
Bee Natural Ltd. or other processing company/ exporter
Wholesalers
Transporters
Household use and local individuals
Rental lorry or middleman with vehicle
Producers Bee Farmers (crude honey, propolis, honeycomb, beeswax)
Key: = end market = potential link CHANNEL 1 Local market CHANNEL 2 Regional market CHANNEL 3 Export market
314
KEY REFERENCES
M4P Working Group. Making Value Chains Work Better for the Poor: A Toolbook for Practitioners of Value Chain Analysis. 2005. www.markets4poor.org/?name=publication&op=vie wDetailNews&id=964. Miehlbradt, Alexandra and Linda Jones. Market Research for Value Chain Initiatives. Information to Action: A Toolkit Series for Market Development Practitioners. Mennonite Economic Development Associates (MEDA), December 2007. http://communities.seepnetwork.org/edexchange/ node/232. USAID. The Value Chain Framework. USAID Brieng Paper. 2008. www.microlinks.org/ev_ en.php?ID=21629_201&ID2=DO_TOPIC. . Value Chain Approach to Economic Growth with Poverty Reduction. USAID Brieng Paper. 2008. http://pdf.usaid.gov/pdf_docs/PNADJ375.pdf.
NOTES
1 Steven Haggblade and Matthew Gamser, A Field Manual for Subsector Practitioners, USAID (November 1991), www.microlinks.org/ev02.php?ID=7351_201&ID2=DO_ TOPIC. Ibid., pp. 20-27. Ibid., p. 21. Ibid. Ibid., p. 23. Ibid. Ibid., p. 24. Ibid., p. 25. Ibid. Ibid. Ibid., p. 26. Ibid. Ibid., p. 27. American Refugee Committee (ARC), Lulu Nut Sub-Sector Mapping, Value chain map used during an ARC Value Chain Analysis training in Gulu, Uganda in June 2007. American Refugee Committee (ARC), Beekeeping Sub-Sector Mapping, Value chain map used during an ARC Value Chain Analysis training in Gulu, Uganda in June 2007.
2 3 4 5 6 7 8 9 10 11 12 13 14
15
315
Labor Market Assessment
In order to assess occupational demand in a region, it is important to conduct a labor market assessment. For the development of a livelihoods intervention, a labor market assessment helps practitioners ensure that displaced program participants have employment and income generation opportunities while preventing saturation of the local labor market. A labor market assessment must: identify existing market assessments in order to coordinate data collection (such as surveying local and national government and nongovernmental organization (NGO) data on labor markets, pay rates and the cost of living, where possible); identify new and growing markets and/or innovative sectors; identify opportunities for developing partnerships and linkages with NGOs, community-based organizations (CBOs) and state and private employers and local enterprises; identify local development projects and priorities that will require a labor force; determine which trades have signicant local labor market demand; determine which sectors have labor shortages; determine which sectors are capable of absorbing more labor; assess the absorption capacity of each trade to ensure that there will not be an excess supply of available workers; determine the minimum skills requirements of occupations in demand;
316
LABOR MARKET ASSESSMENT
identify occupations that accept female employees and those with disabilities or special needs; what types of duties women and vulnerable groups, including people with disabilities, are capable of performing in various sectors, taking into consideration potential cultural or physical constraints; identify barriers to employment due to gender, age, ability, ethnicity, social group, religion or other reasons; identify how the informal sector has an impact on employment opportunities; be sensitive to the employment and economic needs of the host community. Labor market assessments should consult: local employers and business owners; trade/producer/business associations or local enterprise networks; state and local government agencies; local training providers; donors, international NGOs, NGOs, CBOs and community leaders in the area; displaced individuals in the community, who may be attuned to local market demands. When consulting local business owners and operators, ask:1 Are there different employment opportunities within this business? How easy is it for someone to nd a job in your trade? Can you list some of the challenges you face running this business? Seek to understand: competition/market saturation; employee training/human resources; access to limited market for inputs; and the purchasing power of community members. What are the plans for the future of this business?
Seek to understand whether the business is expanding, hiring employees or downsizing/ letting go of employees, diversifying/adding different products or services, entering a new sector or beginning a new type of service. How do you expect your business to perform in the coming year? Have you recently had to use credit for the business? Is this business in a sector that is growing and is likely to need new employees or entrepreneurs in the immediate future? In the long term? Where do you nd or recruit employees? Are you willing to hire women and persons with disabilities or special needs? How have your employees gained their skills (e.g., through training or previous experience), or have they learned on the job? How many employees have you trained? What is the most valuable training needed for your trade? Do you have a steady ow of work to perform based on customer demand? Which products or services do you sell the most? What percentage of inputs (e.g., tools, seed, equipment) needed is local and what percentage is imported? What months or seasons are the busiest? Are input costs more expensive at different times of the year? Questions for trade, producer and business associations include:2 Where are the major markets for this product in the country or region? What is the local demand? Where are the major markets for this product outside the country or region? Has demand gone up, down or stayed the same in the last few years? Is a change in demand anticipated in the coming years?
317
Questions for state and local government agencies include:3 What is the estimated percentage of people without employment in the host community (by gender, age and ability)? What is the estimated percentage of local people who are self-employed? What are the traditional professions locally? What goods or services are currently unavailable that you would like to see available locally? What services required by the community (such as health care, education, transportation or law enforcement) have a shortage of workers? Is there a need for trained professionals, such as teachers, trained health care workers or drivers? Is vocational training offered locally? Is the training meeting the needs of local labor market demand? What kind of training do you think would be most valuable? What type of training would the local community like to see offered to men? What type of training would the local community like to see offered to women? Are there efforts to promote the employment opportunities of women? How do households secure additional sources of income when needed? What is the average household income (annual, monthly, weekly) in the local area? Are there particular local groups that are most in need? Are there resources available (such as training, equipment and transportation) that can help vulnerable groups and those with disabilities and special needs perform certain jobs? Is the government planning any local development projects that will require a labor force? In what sectors? What type of labor and
skills will the projects require? For approximately how long will this labor be needed? Are there any industries (including cottage industries) in or close to the local area? Do any large national or multinational companies plan to establish themselves in this region? If so, will this lead to job creation? In what sectors? When consulting with local training providers, ask: What training is offered that best suits local labor market needs? Are there any labor shortages in the area? In what trades to you anticipate labor market saturation? In which sectors or trades do you see potential for growth? What obstacles do women face in gaining employment? When consulting with donors, international NGOs, national NGOs and CBOs, ask:4 What donor or agency activities, including local and infrastructure development and human resource needs in camp settings, in the coming months and years can directly or indirectly provide employment opportunities? Will these projects require a labor force? What types of labor and skills will be required for the projects? Will there be any employment opportunities with your organization for the duration of your stay in the area? In what occupations? What skills will be required? When seeking the participation of the displaced community, ask:5 What kinds of work would you like to be doing?
318
LABOR MARKET ASSESSMENT
What skills or experience do you have that you think are useful in the local economy? What local employment opportunities, including self-employment, do you think are the most viable? What kinds of vocational training opportunities would you like to see? What would be the best time of year for you and/or members of your household to receive training? Have you ever had the opportunity to receive training? What goods or services that are not available in the community would you like to see made available? How many members of your household who are of working age are currently unemployed? Are female members of your household able to work with the other responsibilities they have, such as child care and household duties? Are they able to earn supplementary income, such as vegetable growing or sewing? How does your household secure additional sources of income?
KEY REFERENCES
Agnew, Matthew. Afghanistan Labor Market Information Survey. International Rescue Committee and the Afghanistan Ministry of Labor and Social Affairs, September 2003. Womens Commission for Refugee Women and Children and Columbia University School of International and Public Affairs (SIPA). Market Assessment Toolkit for Vocational Training Providers and Youth. October 2008. www.womenscommission. org/pdf/ug_ysl_toolkit.pdf.
NOTES
1 See Womens Commission for Refugee Women and Children and Columbia University School of International and Public Affairs (SIPA), Market Assessment Toolkit for Vocational Training Providers and Youth (October 2008): pp. 42-46, www.womenscommission.org/pdf/ug_ ysl_toolkit.pdf. See also IRC, Afghanistan Labor Market Information Survey, IRC and the Afghanistan Ministry of Labor and Social Affairs (September 2003): p. 128. Womens Commission for Refugee Women and Children and Columbia University School of International and Public Affairs (SIPA), Market Assessment Toolkit for Vocational Training Providers and Youth, October 2008, pp. 50-56. See IRC, Afghanistan Labor Market Information Survey, IRC and the Afghanistan Ministry of Labor and Social Affairs (September 2003): p. 127. See also, Womens Commission for Refugee Women and Children and Columbia University School of International and Public Affairs (SIPA), Market Assessment Toolkit for Vocational Training Providers and Youth (October 2008): pp. 35-41. See note 2, pp. 76-82. See IRC, Afghanistan Labor Market Information Survey, IRC and the Afghanistan Ministry of Labor and Social Affairs (September 2003): pp. 129-130.
4 5
319
Organizational Capacity Assessment
It is critical that an agency seeking to develop a livelihoods intervention not undertake programming for which it is unequipped. An agency must assess whether it has the leadership, stafng, technical capacity, experience, expertise and resources necessary to run a program. If a program fails or ceases suddenly due to technical or staff incapacity and/or inadequate funding, it can have signicant negative impacts on program participants. In cases where it does not have the necessary capacity or resources, an agency can attempt to partner with other organizations that have the appropriate expertise. In addition to gauging organizational capacity, agencies must determine whether there are other existing services or programs accessible to their target community, in order not to create duplicative, parallel programming. All of these factors must be assessed in order to make an informed decision about whether to proceed with the development of a livelihoods intervention. CARE Somalia has developed a simple Capacity Assessment Tool (CAT)1 that is meant to gauge data including baseline datato score and assess an organizations capacity. This ve-element CAT, as outlined here, can be done more quickly than a formal organizational capacity assessment. If an organization can answer the majority of these positively, they may have the required capacity. If the organization does not have these systems, expertise and experience in place, it is very unlikely that the agency should proceed with planning an economic intervention.
320
ORGANIZATIONAL CAPACITY ASSESSMENT
GOVERNANCE
1. NGO/Partner has clearly articulated mission and goals. 2. NGO/Partners mission is understood by all staff. 3. NGO/Partner has a written strategic plan. 4. Monitoring and evaluation mechanisms are built into NGO/Partners plans. 5. NGO has written fundraising strategies.
FINANCE
1. NGO/Partner has appropriate segregation of duties and responsibilities of accountant, project manager and chairperson. 2. Financial reporting is accurate and timely. 3. Reports are used for planning. 4. NGO has written nancial policies. 5. NGO has self-governing income potential.
TECHNICAL/SERVICE DELIVERY MANAGEMENT PRACTICES

1. NGO has an organizational structure with clearly dened lines of authority and responsibility. 2. There is a clear exchange of information within the NGO. 3. Updated written administrative procedures exist. 4. Written recruitment, employment and personnel practices are clearly dened and followed. 5. Operating plans are developed, reviewed and updated, and reect a strategic plan. 6. Resources are planned for and allocated properly. 7. Staff is actively involved in planning. 8. Beneciaries and staff are involved in program design, implementation and evaluation. 9. NGO/Partner regularly reports on activities and results of evaluations. 10. All staff have valid job descriptions. 11. NGO/Partner has a clearly dened system of measuring staff performance. 12. NGO/Partner has capability to train its staff. 1. Relevant sectoral expertise exists within the organization. 2. Expertise is credible and recognized by the development community. 3. NGO/Partner is capable of adapting program and service delivery to the changing requirements of the community. 4. NGO/Partner has capability of conducting community needs assessments. 5. Baseline data is gathered by the NGO/Partner. 6. NGO/Partner can mobilize its community. 7. NGO/Partner prepares regular progress reports.
321
SUSTAINABILITY
1. NGO/Partner is a member of, and shares information with, umbrella organizations and networks. 2. NGO/Partner has partnerships with other organizations. 3. NGO/Partner has fee for services and/ or other cost recovery mechanisms built into service delivery. 4. Proposal writing and fundraising capacities exist.2 The U.S. Agency for International Development (USAID) has developed a comprehensive Organizational Capacity Assessment Tool (OCAT)3 that assesses seven components of organizational effectiveness: governance, management practices, human resources, nancial resources, service delivery, external relations and sustainability. The OCAT is a thorough diagnostic process that is based upon interviews, scoring and rating responses, and reporting on the ndings of the organizations strengths and weaknesses to its board, stakeholders, community members, and governments and funders for feedback and ongoing improvement. Irrespective of the tools used, organizations must reect critically on their capacity to design, implement, monitor and evaluate a program before initiating it. An organization must have the nancial and personnel resources to successfully complete the envisioned program prior to beginning, and must have the technical expertise to design and implement the program effectively. Target participants are not well served by poorly designed, inadequately funded and mismanaged programs.
KEY REFERENCES
CARE Somalia. Capacity Assessment Tool. No date. www.careinternational.org.uk/download. php?id=39. McKinsey & Company. Annex: Capacity Assessment Grid. In Effective Capacity Building in Nonprot Organizations. August 2001. www. venturephilanthropypartners.org/learning/reports/ capacity/capacity.html. USAID Center for Development Information and Evaluation. TIPS: Recent Practices in Monitoring and EvaluationMeasuring Institutional Capacity. 2002. No. 15, Annexes. http://assess.mercycorps. org/jiveassess/entry.jspa?externalID=166&category ID=106.
NOTES
1 2 3 CARE Somalia, Capacity Assessment Tool (No date), www.careinternational.org.uk/download.php?id=39. Ibid., pp. 3-4. USAID Center for Development Information and Evaluation, TIPS: Recent Practices in Monitoring and EvaluationMeasuring Institutional Capacity, Annexes No. 15 (2000): p. 66, http://assess.mercycorps.org/jiveassess/entry. jspa?externalID=166&categoryID=106.
322
MONITORING AND EVALUATION
Monitoring and Evaluation
MONITORING
What Is Monitoring? According to Oxfam Great Britain, monitoring is the systematic assessment of a programs performance over time. It is a collaborative process between nongovernmental organizations (NGOs), UN agencies and other implementing partners and communities to review what has taken place, to identify changes that have occurred, and to consider whether the program has contributed to these changes. Monitoring Reviews are regular learning events for program staff and partners to reect upon information gathered through monitoring activities, to analyze what it is saying about their program and the context in which it operates, and to decide what that means for their future work.1 Why Do We Monitor? Monitoring is used to check what positive and negative, planned and unplanned changes are happening in the lives of people as the result of a program.2 This is important for transparency, accountability and problem solving, and for utilizing and responding to feedback. Further, well-planned, well-implemented and well-documented monitoring provides a good basis for a more in-depth review of longer-term and sustained impact.3
323
Oxfam Great Britains Monitoring Steps:4 Oxfam Great Britain lays out the steps that should be followed to monitor a program. 1. Articulating program logic. Developing a clear program logic model together with partners and other key stakeholders can help to build a joint vision of how you expect change to happen and the role each party will play in bringing about this change.5 2. Developing indicators. Commonly used indicators include process or activity indicators, which are used to measure the progress of activities against your work plan while outcome and impact indicators are used to measure progress towards the changes you are hoping to achieve.6 3. Producing a monitoring plan. There should be agreement about indicators and how data will be monitored among the agency staff, partners and communities. Monitoring plans should be thorough, but practical. This is helped by keeping the number of indicators against which information is collected to a minimum; by planning eld visits to t with monitoring activities; by involving partners and local communities in the information collection process and by making the most of secondary data sources. Monitoring plans should also include processes for monitoring unexpected as well as expected changes.7 4. Collecting baseline information. Once the program logic model has been developed and indicators identied, a baseline study should be undertaken. This is the rst formal set of measurements against outcome or impact indicators.8 5. Timing and focus of monitoring reviews. Outcome or impact level change takes time to effect, so its important to think carefully about when you collect information against these indicators. You may wish to focus on assessing
progress against activities or outputs at the beginning of a program and monitor progress towards the expected outcomes and impact at a later stage.9 The effectiveness of monitoring can be maximized by developing a thorough plan and sufcient time line for monitoring visits and activities; having an adaptable approach to adjust to changing contexts; ensuring the participation of the local community and stakeholders; and ensuring that there are adequate funds to cover monitoring activities.
EVALUATION
What Is Evaluation? Evaluations, according to Oxfam Great Britain, complement ongoing monitoring by providing more in-depth, objective assessments of a programs design, implementation and results at particular points in time. Where monitoring shows general trends, evaluations generally help explain why things are happening the way that they are. Program evaluations may be undertaken at any point in the program cycle where there is a need to learn more about how the program is working, or to be accountable for the resources with which weve been entrusted.10 Evaluation Types Evaluations can be varied and categorized by purpose, timing, strategy, philosophy and so on.11 Oxfam Great Britain notes that the three primary types of evaluations, which are purpose-based, include: Process evaluations. Process evaluations focus on gaining a good understanding of how a
324
MONITORING AND EVALUATION
program works. They look at what is being done by a program, for whom, and in what way in an effort to gain an in-depth understanding of the functioning of a program. Process evaluations are used to identify where improvements might be made to program design and delivery, and can also support decisions about whether a program should be replicated or expanded. Most early or mid-term evaluations will be process evaluations.12 Outcome and impact evaluations. These are sometimes referred to as nal evaluations or summative evaluations; they deliver an assessment of the contributions the program has made towards immediate changes and/or broader, long-term effects, and help explain why a particular intervention has or has not been successful. Outcome and impact evaluations range in rigor from those that attempt to build a strong case for attributing change(s) to a program at one end of the spectrum to those which simply measure changes ex-ante [those changes predicted at the start of the program and whether or not they happened] and speculate on links between the changes and the program at the other. Outcome and impact evaluations tend to use experimental or quasi-experimental designs.13 Meta-evaluations. These evaluations pull together ndings from two or more evaluations on similar type programs. They are designed to aggregate the ndings from individual evaluations, and often also draw on additional corroborative evidence, in order to draw lessons for the future with a view to improving performance. Meta-evaluations are often desk-based rather than eld-based.14 Final evaluations should assess the programs outcomes or impact; the value added to the program; and the programs cost-effectiveness.15
MONITORING AND EVALUATION (M&E)

Monitoring and evaluation for livelihoods should measure the needs and seek the direct participation of displaced people and the changes in their livelihoods and economic, food and physical security. Because livelihood interventions for displaced groups often operate in unstable and changing contexts, including conict, post-conict and post-disaster contexts, it is important to conduct M&E through an appropriate lens. Cate Turton, in Livelihood Monitoring and Evaluation: Improving the Impact and Relevance of Development Interventions, writes: Livelihoods M&E must aim to keep track of this moving pictureultimately we are not interested in generating static comprehensive situation reports but on understanding whether livelihoods are moving in positive directions. Livelihoods M&E therefore has a strong focus on looking for trends and directions of change...If livelihood M&E is to make its contribution to more effective development processes it must be situated within and contribute to an institutional environment in which ndings emerging from livelihoods M&E are perceived as a useful input to policy review and resource allocation processes. The success of livelihood M&E is therefore contingent on a capacity for ongoing learning so that problems can be effectively solved and efciently dealt with on an expanding scale of operation.16
325
KEY REFERENCES
Catley, Andrew et al. Participatory Impact Assessment: A Guide for Practitioners. Feinstein International Center, Tufts University. October 2008. https://wikis.uit.tufts.edu/conuence/ display/FIC/Participatory+Impact+Assessment-+a+Guide+for+Practitioners. Global Development Research Center (GDRC). Gender Analysis Framework (including Gender Analysis Matrix tool). www.gdrc.org/gender/framework/framework.html. Oxfam Great Britain. Oxfam GB Evaluation Guidelines. www.oxfam.org.uk/resources/evaluations/ index.html. . Oxfam GB Programme Monitoring Review: Mandatory Requirements and Support Materials. www.oxfam.org.uk/resources/evaluations/ downloads/oxfam_monitoring_review_guidelines. pdf. Turton, Cate. Livelihood Monitoring and Evaluation: Improving the Impact and Relevance of Development Interventions. IDL. February 2001. http://portals. wi.wur.nl/les/docs/ppme/tur-ME01.rtf.
NOTES
1 See Oxfam Great Britain, Oxfam GB Programme Monitoring Review: Mandatory Requirements and Support Materials, p. 3, www.oxfam.org.uk/resources/evaluations/ downloads/oxfam_monitoring_review_guidelines.pdf. Ibid., p. 4. Ibid. Ibid., pp. 6-7. Ibid., p. 6. Ibid. Ibid., p. 7. Ibid. Ibid. See Oxfam Great Britain. Oxfam GB Evaluation Guidelines, p.2, www.oxfam.org.uk/resources/evaluations/ index.html. Ibid., p. 6. Ibid. Ibid. Ibid. Ibid., p. 7. Cate Turton, Livelihood Monitoring and Evaluation: Improving the Impact and Relevance of Development Interventions, IDL (February 2001): p. 9, http://portals.wi.wur.nl/les/docs/ppme/tur-ME01.rtf.
2 3 4 5 6 7 8 9 10
11 12 13 14 15 16
326
FURTHER RESOURCES
Further Resources for Assessment Tools and Approaches
CDA Collaborative Learning Projects. The Do No Harm Handbook (The Framework for Analyzing the Impact of Assistance on Conict). November 2004. www.cdainc.com/dnh/docs/DoNoHarmHandbook.pdf. Jaspars, Susanne and Jeremy Shoham. A Critical Review of Approaches to Assessing and Monitoring Livelihoods in Situations of Chronic Conict and Political Instability. Overseas Development Institute Working Paper 191, December 2002. www.odi.org.uk/resources/details.asp?id=1986&title=critical-review-approachesassessing-monitoring-livelihoods-situations-chronic-conict-political-instability. Mercy Corps Assessment Tools Resource Base. http://assess.mercycorps.org/jiveassess/index.jspa. Oxfam Great Britain Assessment Tools. www.oxfam.org.uk/resources/learning/humanitarian/fast/assessment_tools.html#livelihoods. Reproductive Health Response in Conict (RHRC) Consortium. Gender-based Violence Tools Manual: For Assessment & Program Design, Monitoring & Evaluation in Conict-affected Settings. November 2003. www. rhrc.org/resources/gbv/gbv_tools/manual_toc.html.
327
RHRC Consortium/JSI Research and Training Institute. Checklist for Action: Prevention & Response to Gender-based Violence in Displacement Settings. June 2004. www.womenwarpeace.org/docs/ PR_checklist.pdf. Rietbergen-McCracken, Jennifer and Deepa Narayan. Participation and Social Assessment: Tools and Techniques. World Bank, 1998. www.serd.ait. ac.th/ump/html/books%5Cwbpsa.pdf. UNHCR. Handbook for Self-reliance: Annex 1.5, Guiding Principles for Assessments; Annex 1.6, Targeting Assessments; Annex 1.7, Types of Assessment. August 2005. www.unhcr.org/publ/ PUBL/44bf40cc2.html. Womens Commission for Refugee Women and Children. Disabilities among Refugees and Conictaffected Populations: Resource Kit for Fieldworkers. June 2008. www.womenscommission.org/pdf/ disab_res_kit.pdf. Young, Helen et al. Food-security Assessments in Emergencies: A Livelihoods Approach. Humanitarian Practice Network, Overseas Development Institute, HPN Network Paper 36, June 2001. www.forced migration.org/sphere/pdf/food/odi/food-securityand-livelihoods.pdf.
328
Additional Resources
PUBLICATIONS
Beasley, Kenneth W. Job Creation in Postconict Societies. USAID Center for Development Information and Evaluation, Bureau for Policy and Program Coordination. Issue Paper no. 9, April 2006. http://pdf.dec. org/pdf_docs/PNADE194.pdf. CHF International. International Development Matters: Youth, Conict and Enterprise. CHF International Occasional Papers, ol. 2, February 2008. www.chnternational.org/node/21515. De Vriese, Machtelt. Refugee Livelihoods: A Review of the Evidence. UNHCR Evaluation and Policy Analysis Unit, February 2006. www.reliefweb.int/rw/lib.nsf/db900sid/AMMF-6T7GW3/$le/UNHCR-Feb2006. pdf?openelement. Department for International Development (DFID). Sustainable Livelihoods Guidance Sheets. October 2001. www.eldis.org/go/topics/dossiers/livelihoods/what-are-livelihoods-approaches/training-and-learningmaterials. (Also available in Arabic, Chinese, French, Portuguese, Spanish and Tamil.) Goovaerts, Piet, Martin Gasser and Aliza Belman Inbal. Demand Driven Approaches to Livelihood Support in Post-war Contexts: A Joint ILO-World Bank Study. ILO-World Bank Social Development Papers: Conict Prevention & Reconstruction Community-Driven Development, Paper no. 29, October 2005. www. microlinks.org/ev_en.php?ID=20732_201&ID2=DO_TOPIC .
329
Guarnieri, Valerie. Food Aid and Livelihoods: Challenges and Opportunities in Complex Emergencies. FAO International Workshop: Food Security in Complex Emergencies: Building Policy Frameworks to Address Longer-term Programming Challenges. Tivoli, Italy, September 23-25, 2003. ftp://ftp.fao.org/docrep/fao/meeting/009/ae518e. pdf. Horst, Cindy. Refugee Livelihoods: Continuity and Transformations. Oxford University Press. Refugee Survey Quarterly, vol. 25, no. 2, 2006. Inter-Agency Standing Committee (IASC). Gender and Livelihoods in Emergencies. In Women, Girls, Boys, Men: Different NeedsEqual Opportunities. Inter-Agency Standing Committee Gender Handbook in Humanitarian Action, 2006. http://ochaonline.un.org/HumanitarianIssues/ GenderEquality/KeyDocuments/ IASCGenderHandbook/tabid/1384/Default.aspx. (Also available in Arabic, French, Russian and Spanish.) . Guidelines for Gender-based Violence Interventions in Humanitarian Settings: Focusing on Prevention of and Response to Sexual Violence in Emergencies. September 2005. http://humanitarianinfo.org/iasc/pageloader.aspx?page=contentsubsidi-tf_gender-gbv. (Also available in Arabic, Bahasa, French and Spanish.) . Handbook for the Protection of Internally Displaced Persons. Inter-Agency Standing Committee Global Protection Cluster Working Group. Provisional Release, December 2007. www. unhcr.org/refworld/publisher,IASC,,,4790cbc02,0. html. (Also available in French.)
ILO. Local Economic Recovery. ILO Factsheet. May 2003. www.ilo.org/public/english/employment/ crisis/download/factsheet13.pdf. . Local Economic Recovery in Iraq: Learning Material for Practitioners. 2007. www.ilo.org/public/ english/employment/crisis/events/peer/download/ tool4-ppt.pdf. . Prevention of Child Recruitment and Reintegration of Children Associated with Armed Forces and Groups: Strategic Framework for Addressing the Economic Gap. 2007. www.ilo.org/ipecinfo/product/ viewProduct.do?productId=6965. Jacobsen, Karen. The Economic Life of Refugees. Sterling, VA: Kumarian Press, 2005. www.kpbooks. com/books/BookDetail.aspx?productID=187209. Jaspars, Susanne. From Food Crisis to Fair Trade: Livelihoods Analysis, Protection and Support in Emergencies. Emergency Nutrition Network Special Supplement Series no. 3, March 2006. www. ennonline.net/fex/27/supplement27.pdf. Jaspars, Susanne, Sorcha OCallaghan and Elizabeth Stites. Linking Livelihoods and Protection: A Preliminary Analysis Based on a Review of the Literature and Agency Practice. Humanitarian Policy Group, Overseas Development Institute HPG Working Paper, December 2007. www.odi.org.uk/resources/ hpg-publications/working-papers/2007/livelihoodsprotection-analysis-literature-agency-practice.pdf. Longley, Catherine and Daniel Maxwell. Livelihoods, Chronic Conict and Humanitarian Response: A Synthesis of Current Practice. Overseas Development Institute, Livelihoods and Chronic Conict Working Paper 182, June 2003. www.odi.org.uk/resources/odi-publications/
330
A ADDITIONAL RESOURCES
working-papers/182-livelihoods-chronic-conicthumanitarian-response.pdf. Ohlsson, Leif. Livelihood Conicts: Linking Poverty and Environment as Causes of Conict. SIDA Department for Natural Resources and the Environment. December 2000. www.sida. se/?d=118&a=2750&language=en_US. SEEP Network. Minimum Standards for Economic Recovery after Crisis. First edition, February 2009. The publication will be available in 2009 at the following address: http://communities.seepnetwork. org/econrecovery. Social Initiatives, Ltd. Womens Access to Markets: Vulnerabilities and Constraints: Study on the Social Vulnerability Analysis of Women to Assess Their Market Access and Constraints from Selected Sites of BUILD, RMP and SHOW Project of CARE Bangladesh. January 2003. www.carebd.org/women_access_to_markets.pdf. Sphere Project. Humanitarian Charter and Minimum Standards in Disaster Response. 2004. www.sphereproject.org. (Also available in Arabic, Azerbaijani, Burmese, Farsi, French, German, Korean, Pashtu, Russian, Spanish, Tamil, Turkish and Urdu.) Tutnjevic, Tamara. Gender in Crisis Response: A Guide to the Gender-Poverty-Employment Link. ILO InFocus Programme on Crisis Response and Reconstruction, November 2003. www.ilo.org/public/ english/employment/crisis/download/gender3.pdf. United Nations. United Nations Policy for Postconict Employment Creation, Income Generation and Reintegration. May 2008. www.reliefweb.int/rw/lib. nsf/db900SID/ASAZ-7NZKM4?OpenDocument.
UNDP. Post-Conict Economic Recovery: Enabling Local Ingenuity. UNDP Bureau for Crisis Prevention and Recovery, Crisis Prevention and Recovery Report 2008. www.undp.org/cpr/we_do/eco_ recovery.shtml. (Executive Summary also available in French and Spanish.) UNHCR. Handbook for Planning and Implementing Development Assistance for Refugees (DAR) Programmes. January 2005. www.unhcr.org/publ/ PUBL/44c4875c2.html. . Handbook for Self-reliance. August 2005. www.unhcr.org/publ/PUBL/44bf40cc2.html. . UNHCR Handbook for the Protection of Women and Girls. January 2008. www.unhcr.org/ protect/PROTECTION/47cfae612.html. UNICEF. The Role of Social Support and Economic Skill Building Programs in Mitigating Adolescents Vulnerabilities: Perspectives and UNICEFs Experience to Date. 2004. USAID. Livelihoods & Conict: A Toolkit for InterventionKey Issues, Lessons Learned, Program Options, Resources. 2005. www.usaid.gov/our_work/cross-cutting_programs/ conict/publications/docs/CMM_Livelihoods_ and_Conict_Dec_2005.pdf. . Poverty Reduction in Conict and Fragile States: Perspectives from the Household Level. Summary of Proceedings from a Conference held in Washington, D.C., November 6-9, 2006. www.diw.de/deutsch/30033.html. USAID and EQUIP3. Youth Livelihoods Development Program Guide. June 2008. www.equip123. net/docs/e3-LivelihoodsGuide.pdf.
331
WEBSITES
Children, Youth & Economic Strengthening (CYES) Network and Learning Platform. www.cyesnetwork.org. DFID Livelihoods Resource Centre. www.livelihoodsrc.org. Feinstein International Center, Tufts University Livelihoods. https://wikis.uit.tufts.edu/conuence/ display/FIC/Livelihoods. Forced Migration Online: Livelihoods. www.forcedmigration.org/browse/thematic/ livelihoods.htm. ILO/Crisis. The International Labour Organization Crisis Response and Reconstruction Programme. www.ilo.org/public/english/employment/crisis/. Livelihoods Connect. www.eldis.org/go/livelihoods. Overseas Development Institute Humanitarian Policy Group. www.odi.org.uk/themes/ humanitarian/index.html. Small Enterprise Education and Promotion (SEEP) Network. www.SEEPNetwork.org. USAID, Microenterprise Learning, Information and Knowledge Sharing (microLINKS). www.microlinks.org. Womens Refugee Commission. www.womensrefugeecommission.org.
332
Annex
Minimum Standards for Economic Recovery After Crisis
The SEEP Network has developed the following Minimum Standards for Economic Recovery After Crisis1 for six categories: Economic Recovery Interventions Assessment and Analysis in Crisis Environments Financial Services Access to Assets Employment Creation Enterprise Development
STANDARDS COMMON TO ALL ECONOMIC RECOVERY INTERVENTIONS

Common Standard 1: Response to Market Failure Economic recovery is a response to evidence that market failures are signicantly undermining the enterprises from which affected households earn their livelihoods.2 Common Standard 2: Market-based Programming Program design and implementation decisions reect market realities. There is a thorough understanding of the supply of, and demand for, goods and services, and how the organization of markets
333
determines power and governance among different market actors. Programs are exible, allowing managers to revisit programmatic assumptions and operations given changing market conditions.3 Common Standard 3: Support Long-term Recovery Economic recovery programs, even those that are short to medium term, contribute to long-term recovery by working to strengthen local markets, institutions and enterprises, and ensuring that all program activities include up-front exit strategies for outside actors.4
to technical advisers; they also include capacitybuilding components to improve skills of eld staff.8 Common Standard 8: Collect and Apply Learning Programs compensate for the rapidly changing context and often-rapid turnover endemic to emergency environments by instituting systems that collect, disseminate and apply learning in order to assess and improve performance.9
STANDARDS FOR ASSESSMENT Common Standard 4: Inclusive and Transparent AND ANALYSIS IN CRISIS ENVIRONMENTS Program Design and Implementation
Program design considers working with all market actors as a means to improve vulnerable households livelihoods. Programs effectively communicate the program objectives, means of selection and outcomes to all stakeholders.5 Common Standard 5: Use Both Direct and Indirect Mechanisms to Achieve Impact on Target Populations Programs analyze the impact and cost-effectiveness of directly providing services to target groups, as compared to indirect activities that improve market conditions for all populations.6 Common Standard 6: Coordinate Efforts for Greater Impact Recognizing that economic recovery involves many stakeholders, capacities and resources, programs coordinate their activities with other initiatives led by the private sector, government or nongovernmental actors.7 Common Standard 7: Build Technically Competent Teams Programs are staffed by individuals well versed in economic recovery principles and/or have access Assessments and Analysis Standard 1: Timing Assessments begin as soon as possible, incorporating ongoing processes that contribute to program monitoring.10 Assessments and Analysis Standard 2: Scope Assessments synthesize relevant information about affected households livelihoods, market systems and sociopolitical factors.11 Assessments and Analysis Standard 3: Data and Methods Assessment data is gathered using methods that ensure data quality and participants security.12 Assessments and Analysis Standard 4: Analysis Analysis of assessment data is timely, transparent and relevant to monitoring and program decision needs.13 Assessments and Analysis Standard 5: Dissemination Assessment results are disseminated to provide comprehensible guidance to appropriate decision makers.14
334
A ANNEX
STANDARDS FOR FINANCIAL SERVICES

Financial Service Standard 1: Intervention Timing Financial services are initiated or reinstated as soon as possible, and align with the objectives and time horizon of the implementing organization.15 Financial Service Standard 2: Appropriate Financial Services Financial service interventions are based on the capacity of the nancial organization and the needs of the target population.16 Financial Service Standard 3: Client Protection Financial service providers adhere to accepted norms for client protection.17 Financial Service Standard 4: Good Financial Services Practice All nancial service providers adhere to accepted, good nancial services practices.18 Financial Service Standard 5: Coordination and Transparency Financial service providers communicate proactively with relevant stakeholders and commit to transparency.19 Financial Service Standard 6: Crisis Risk Mitigation Financial service providers have policies in place to protect the organization and clients from effects caused by crisis.20
STANDARDS FOR ACCESS TO ASSETS

Access to Assets Standard 1: Asset Programming Asset programming is conducted in a manner that facilitates long-term economic recovery, while taking into account issues of targeting, equity, transparency and security.21 Access to Assets Standard 2: Short-term and Long-term Asset Programming Short-term asset programs achieve basic replacement and preservation of existing productive assets; whereas long-term asset programming results in asset growth as a result of beneciaries improved economic capacity.22 Access to Assets Standard 3: Group Assets Interventions to preserve, replace and grow assets through group mechanisms have clear governance and management structures and are based on appropriate cost-benet analysis and assessment of local market implications.23 Access to Assets Standard 4: Land Assets Individuals and communities know about and have access to information, services and products to protect and preserve their land tenure in an equitable manner in times of crisis.24
STANDARDS FOR EMPLOYMENT CREATION

Employment Creation Standard 1: Decent Employment People have equitable access to decent employment with fair remuneration that does not jeopardize the resources they need for their livelihoods.25
335
STANDARDS FOR ENTERPRISE DEVELOPMENT

Enterprise Development Standard 1: Promotion of Activities and Markets, Based on Understanding Potential Returns and Risks New and existing sources of income and livelihoods are promoted with an understanding of the environment, households and enterprises, and consider potential returns, risk and the business environment.26 Enterprise Development Standard 2: Ensuring Viability and Growth Programs promoting enterprises and self-employment address the range of critical needs required for enterprise viability and growth and ensure that enterprises can be economically viable within the existing enabling environment, in both the short and long term.27 Enterprise Development Standard 3: Long-term Sustainability Enterprise development programs are designed with long-term sustainability in mind.28 Enterprise Development Standard 4: Protecting Individuals and the EnvironmentDo No Harm Operations, products and waste of supported enterprises minimize or address potential harm to the environment or individuals, and do not encourage exclusion, entrench poverty, create conict or increase economic disparity.29
NOTES
1 SEEP Network, Minimum Standards for Economic Recovery After Crisis, First edition (February 2009). The publication will be available in 2009 at the following address: http://communities.seepnetwork.org/econrecovery. Ibid., p. 21. Ibid., p. 23. Ibid., p. 25. Ibid., p. 28. Ibid., p. 31. Ibid., p. 34. Ibid., p. 36. Ibid., p. 38. Ibid., p. 43. Ibid., p. 44. Ibid., p. 45. Ibid., p. 46. Ibid., p. 47. Ibid., p. 53. Ibid., p. 54. Ibid., p. 56. Ibid., p. 57. Ibid., p. 59. Ibid., p. 62. Ibid., p. 69. Ibid., p. 73. Ibid., p. 74. Ibid., p. 77. Ibid., p. 83. Ibid., p. 89. Ibid., p. 91. Ibid., p. 95. Ibid., p. 97.
2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29
336
Acronyms and Abbreviations
AAH ADAP AgREN ALNAP ANSAB ARC ASCA ATM B3 BDS BHF CAHW CBO CEA CEDAW CFW CGAP CGIAR CHE CIAT
Action Africa Hilfe Adolescent Development and Participation Unit (UNICEF) Agricultural Research and Extension Network Active Learning Network for Accountability and Performance in Humanitarian Action Asia Network for Sustainable Agriculture and Bioresources American Refugee Committee Accumulating Savings and Credit Association Automated teller machine Build back better Business development services Business Humanitarian Forum Community animal health workers Community-based organization Compaa Envasadora del Atlntico (Colombia) Convention on the Elimination of All Forms of Discrimination against Women (1979) Cash-for-Work Consultative Group to Assist the Poor Consultative Group on International Agricultural Research Complex humanitarian emergency International Center for Tropical Agriculture
337
CIMCAW CMS
CRC
CSR CYCLE DAI DDR DFID DNH DRC ECDI EGA EMOPS EPAU EQUIP3 FAO FDI FFD FFW FIC FINCA GBV GDP HPG HTA IASC ICARDA ICCPR ICESCR ICRC ICT IDP IFAD IFC IFRC IGES IIED IIEP ILO IMF IRC
Continuous Improvement in the Central American Workplace Alliance Counterpart Management System Convention on the Rights of the Child (1989) Corporate social responsibility Countering Youth and Child Labor through Education program Development Alternatives, Inc. Disaster risk reduction Department for International Development (United Kingdom) Do No Harm Democratic Republic of Congo Enterprise and Career Development Institute European Generic Medicines Association Ofce of Emergency Programmes (UNICEF) Evaluation and Policy Analysis Unit (UNHCR) Educational Quality Improvement Program 3 (USAID) Food and Agriculture Organization Foreign direct investment Farmer Field Day Food-for-Work Feinstein International Center, Tufts University Foundation for International Community Assistance Gender-based violence Gross domestic product Humanitarian Policy Group, Overseas Development Institute Hometown association Inter-Agency Standing Committee International Center for Agricultural Research in the Dry Areas International Covenant on Civil and Political Rights (1966) International Covenant on Economic, Social and Cultural Rights (1966) International Committee of the Red Cross Information and communication technology Internally displaced person International Fund for Agricultural Development International Finance Corporation International Federation of Red Cross and Red Crescent Societies Institute for Global Environmental Strategies International Institute for Environment and Development International Institute for Education Planning (UNESCO) International Labour Organization International Monetary Fund International Rescue Committee
338
A ACRONYMS & ABBREVIATIONS
ISO IUCN JUMP KDA LEGS M&E MBP MEDA MFI MFO MIS MNC MOU MSB MWG NGO NTFP NWG NYBT OAU ODA ODI OECD PCVA PIA PPP PRA PTA R2R RSC RHVP RoSCA RRA SAIL SEEP SGBV SHG SIDA SIPA SMEs TBBC
International Organization for Standardization International Union for Conservation of Nature Jaringan Utara Migrasi dan Pelarian (Malaysia) K-Rep Development Agency (Kenya) Livestock Emergency Guidelines and Standards Monitoring and evaluation Microenterprise Best Practices Mennonite Economic Development Associates Micronance institution Micronance organization Management information systems Multinational corporation Memorandum of understanding Malawi Savings Bank Migration Working Group (Malaysia) Nongovernmental organization Non-timber forest product National Working Group (Liberia) New York Board of Trade Organization of African Unity Ofcial development assistance Overseas Development Institute Organisation for Economic Co-operation and Development Participatory value chain analysis Participatory Impact Assessment Public-private partnership Participatory Rural Appraisal Parent Teacher Association Refuge-to-Return Refugee Studies Centre, University of Oxford Regional Hunger and Vulnerability Programme Rotating Savings and Credit Association Rapid rural appraisal Stepped Approach to Improving Livelihoods (ARC) Small Enterprise Education and Promotion Network Sexual and gender-based violence Self-help group Swedish International Development Cooperation Agency School of International and Public Affairs, Columbia University Small and medium enterprises Thai-Burma Border Consortium
339
TRY TVET UDHR UN UNCDF UNDCP UNDP UNESCO UNEVOC UNHCR UNICEF UNIDO UN-INSTRAW UN OCHA USAID USD UWESO VCA VSF VSLA WAM WB WFP WHO YES
Tap and Reposition Youth Initiative (Kenya) Technical and vocational education and training Universal Declaration of Human Rights (1948) United Nations United Nations Capital Development Fund United Nations Drug Control Programme United Nations Development Programme United Nations Educational, Scientic and Cultural Organization International Centre for Technical and Vocational Education and Training (UNESCO) United Nations High Commissioner for Refugees United Nations Childrens Fund UN Industrial Development Organization International Research and Training Institute for the Advancement of Women UN Ofce for the Coordination of Humanitarian Affairs United States Agency for International Development U.S. dollars Uganda Womens Effort to Save Orphans Value chain analysis Vtrinaires Sans Frontires Village Savings and Loan Association Women Advancing Micronance International World Bank World Food Programme World Health Organization Youth Employment Summit (Kenya)
340
Glossary
Accumulating Savings and Credit Associations (ASCAs) are time-limited informal micronance groups that offer short-term loans and insurance, using savings as the sole source of loan funds. ASCAs hold the savings of members, who may apply for periodic loans from the accumulated funds. ASCAs normally require records (written or memory based), as the members do not all conduct transactions in the same way. One member is appointed to manage the fund, and records are kept and surpluses are lent out. Some borrow while others only save, and borrowers may borrow different amounts on different dates, for different periods. At the end of a designated period, usually six to 12 months, all outstanding loans are repaid and the accumulated amount plus interest is distributed to group members. Agroforestry is a dynamic, ecologically based, natural resources management system that, through the integration of trees on farms and in the agricultural landscape, diversies and sustains production.1 Apiculture is beekeeping, in which honey, brood comb (beeswax), bee bread (ambrosia) and bee propolis (a resinous mixture used by bees to seal their hives) are extracted and collected from beehives. Apprenticeships are a form of on-the-job training in which students are placed with a skilled worker or a tradesperson in his or her workplace to gain practical skills. Upon completion of the program, apprentices may obtain employment with the mentor, or be placed in a job that requires knowledge of the skills learned. Aquaculture is the farming of aquatic organisms in inland and coastal areas, involving intervention in the rearing process to enhance production and the individual or corporate ownership of the stock being cultivated.2
341
Build back better (B3) is an approach to reconstruction so it is done in a smarter way, helping to mitigate or prevent conict, or supporting communities to be more resilient to shocks and upheavals.3 Business development services (BDS) are provisions for participants of enterprise development and micronance programs to increase their potential for success in their business endeavors. Services are considered nonnancial, and can include training, technical and marketing assistance, business information and linkages, infrastructure development, access to technology, advocacy, advice and mentoring.4 Cash-for-Work (CFW) projects pay participants in cash for short-term temporary employment usually lasting no more than six months.5 The overall goal of Cash for Work is to generate provisional employment rapidly and inject cash into the community.6 Collateral is an asset pledged by a borrower to secure a loan, which can be repossessed in the case of default. Collective remittances are pooled funds sent by a diaspora group to its home community, which are used to increase their impact for development projects and investment. These collective efforts to provide community infrastructure or invest in business and manufacturing are sometimes known as hometown associations (HTAs). Community contracting is important to for-work projects, which work closely with the displaced community. Such contracting is an agreement between a community-based organisation and an external funding or support agency to implement a development project for the benet of the community.7
Corporate social responsibility (CSR) describes a commitment by for-prot groups and companies to integrate socially responsible business practices by making nancial contributions or providing in-kind goods and services to social or environmental causes locally or globally. Credit unions are not-for-prot, member-owned and governed nancial institutions that are typically managed by paid staff who may or may not be assisted by volunteer member committees. Due diligence is the investigation of a person or organization conducted prior to engaging in a contract or an agreement. Durable solutions are long-term solutions for refugees post-displacement, and include voluntary repatriation, local integration or resettlement. Economic recovery is the process of stimulating the growth of an areas local economy through market development, strengthening new and existing enterprises, and job creation in the private sector and public institutions, including reconstructing needed infrastructure that will allow for trade and commerce to take place in local, national, regional and international markets. Employment readiness training is the provision of training for vulnerable groups and others who may require preparation in order to compete in the labor market and employ occupational skills that may have been gained in training and apprenticeship programs. Employment readiness training includes basic education, such as literacy and numeracy; instilling appropriate work behaviors, such as professional demeanor, workplace norms and interview skills; and the development of communication skills that will help them follow instruction and work in a team environment.
342
GLOSSARY A
Enabling environments are those in which conditions exist that permit livelihoods or livelihoods interventions to thrive, such as accessible resources, refugee-friendly policies, business-friendly legislation, tax incentives for business development and a stable and secure environment. Enterprise development is used here to describe the development of business enterprises on the micro, meso and/or macro level to create livelihoods for displaced people, to foster the growth of the private sector and to contribute to economic recovery following conict or crisis. Extension workers are individualseither external experts, locals or refugeeswho are employed by the government or aid agencies to provide advice, plans, training, inputs and support to farmers or community groups.8 Family tracing is a means to restore contact or reunify family members who have been separated due to conict, disaster, violence or other emergencies. Family tracing involves organizing the exchange of family news and the transmission of documents when normal means of communication have broken down, organizing family reunications and repatriations, and issuing travel documents and attestations.9 Financial cooperatives: see Credit unions. Food-for-Work (FFW) refers to short-term temporary employment, where workers are compensated in food, vouchers, or occasionally, in-kind goodsgoods or services provided in lieu of cash. Foreign direct investment (FDI) is foreign investment that establishes a lasting interest in or effective management control over an enterprise. Foreign direct investment can include buying shares of an
enterprise in another country, reinvesting earnings of a foreign-owned enterprise in the country where it is located and parent rms extending loans to their foreign afliates.10 Formal micronance includes micronance services provided by public and private banks, insurance rms and nance companies subject to banking regulations and supervision. Formal remittance transfers occur within established nancial systems, such as banks, money transfer operators and post ofces, and through credit cards and mobile phones. For-work refers to programs that offer short-term employment to community members involved in public works projects in order to build community assets and infrastructure. Gender-based violence (GBV) is an umbrella term for any harmful act that is perpetrated against a persons will, and that is based on socially ascribed (gender) differences between males and females. Acts of GBV violate a number of universal human rights protected by international instruments and conventions. Many but not all forms of GBV are illegal and criminal acts in national laws and policies. Around the world, GBV has a greater impact on women and girls than on men and boys. The term gender-based violence is often used interchangeably with the term violence against women. The term gender-based violence highlights the gender dimension of these types of acts; namely, the relationship between females subordinate status in society and their increased vulnerability to violence. It is important to note, however, that men and boys may also be victims of gender-based violence, especially sexual violence. The nature and extent of specic types of GBV vary across cultures, countries, and regions.11
343
Gross domestic product (GDP) is the value of all nal goods and services produced in a country in one year.12 In-camp economies are localized economies that exist within refugee and IDP camps. In-kind grants are noncash grants used in the process of business development. These grants may include production inputs and/or tools to assist in the development of new and existing enterprises. Incentive work includes jobs performed by refugee and IDP workers, who receive incentives for their work. Incentive workers carry out tasks associated with the running of refugee and IDP camps. Incentive workers are employed in occupations such as school teachers, health workers, translators, community outreach workers, sanitation and construction workers, security guards, vehicle mechanics, janitors, cooks, distribution clerks, ofce staff and gardeners. Informal micronance includes micronance services provided not by institutions, but rather by organizations or individuals within a community with no ofcial legal status and without external intervention. Informal remittance transfers include transfers of money or in-kind goodsitems of value for investment or consumptionthrough unofcial channels, often sent through social networks or individuals employed to make the transfers. Inputs are necessary components that permit people to produce their goods and/or services, such as materials, seeds, tools, equipment, technology, labor, capital, training and technical assistance.
Job placement is the direct referral and placement of workers into available jobs. Land tenure determines land and natural resources ownership, and access and land use rights. Life skills training complements occupational training for particularly vulnerable groups to prepare them for their participation in society and for success in the labor market. Life skills training builds awareness about issues such as HIV/AIDS, reproductive health, human rights, environmental sustainability, personal safety, gender-based violence and landmine awareness. Further, it can include teaching on reconciliation, conict resolution and peace education, peace building, social reintegration and civic responsibility. Livelihoods comprise the capabilities, assets (including both material and social resources) and activities required for a means of living.13 Livestock are dened by the UN High Commissioner for Refugees (UNHCR) as animals kept for domestic use, such as cattle, horses, goats and poultry.14 Market development is a subeld of enterprise and private sector development, whereby development programs help link small enterprises with existing and potential markets.15 These include input and support markets, which provide the necessary resources and enable production along the value chain, as well as nal markets, where the end product can be sold. Memorandum of understanding (MOU) refers to a document that parties use to agree to the terms such as roles and responsibilitiesof a partnership.
344
A GLOSSARY
Merry-go-rounds are savings groups in which each member commits to a weekly payment into a kitty. The sequence of the kittys recipients can be determined randomly, for example., by picking numbers out of a hat or by structured rotation from member to member. Microcredit is dened by the Grameen Bank as small loans to very poor people for self-employment projects that generate income, allowing them to care for themselves and their families.16 The Foundation for International Community Assistance (FINCA), a leading provider of nancial services to lowest-income entrepreneurs, denes microcredit as provision of working capital to fuel the productivity of the worlds poor majority.17 Microenterprise development is dened by the American Refugee Committee (ARC) as programs whose objectives include both the development of protable microenterprises for clients and the sustainable provision of services that help microenterprises (credit, training, etc.). These programs tend to be longer term and are employed in more stable environments.18 Micronance is a term for nancial services provided for people in poverty who are not served by banks and other formal nancial institutions. Micronance institutions (MFIs) are formal providers of micronance services. The term has come to refer to a wide range of organizations, including nongovernmental organizations (NGOs), private commercial banks, partially state-owned banks, nonbank nancial institutions, credit unions and cooperatives. Micronance organizations (MFOs) are often synonymous with MFIs, but are more generally applied to NGO-created entities.
Microinsurance is the protection of low-income people against specic perils in exchange for regular premium payments proportionate to the likelihood and cost of the risk involved.19 Microloans are very small loans to the unemployed, poor entrepreneurs and others living in poverty who are not considered bankable by formal lending institutions, as they lack collateral, steady employment and a veriable credit history. Negative coping strategies are survival strategies that individuals sometimes employ when they do not have adequate resources and their needs are not being met. Such coping strategies, such as engaging in transactional sex for food or collecting rewood in unsafe areas, put individuals at risk of violence, rape and abuse. Non-monetized skills include unpaid tasks such as cooking, cleaning, sewing, child care and care-giving. Non-refoulement is a principle of international refugee law that prohibits forcibly returning a refugee to a territory where s/he may face persecution.20 Ofcial development assistance (ODA) includes ows of ofcial nancing administered with the promotion of the economic development and welfare of developing countries as the main objective.21 Outputs include what is produced for end markets, such as raw products, nished goods or services. Pastoralism is the use of extensive grazing in rangelands for livestock production.22
345
Post-harvest technologies are processing techniques that add value to raw products and lead to increased prots, such as rening, preserving, drying, distilling and extracting the harvested goods. Such processing allows producers to differentiate their agricultural products and permits them to sell their products in the off season, when higher prices can be earned and products may be in greater demand, reducing dependence on immediate harvest earnings. Public-private partnerships are alliances between the public sector and for-prot entities with the potential to enhance development impact through the combined strengths of multiple stakeholders.23 Relief substitution is the local production of relief items for distribution to refugees [and IDPs]. Rather than agencies buying-in and distributing proprietary products, they work with refugees, returnees and local communities who produce and sell products to humanitarian relief programs.24 Goods that aid agencies would otherwise import or purchase for distribution to displaced people in their relief efforts can include vegetables, grains, fruit, soap, mosquito nets, mats, utensils, tools, blankets, sleeping mats, sanitary napkins, tents, knitted clothing, school uniforms, bags, chalk for schools, bricks, mud stoves, wheelbarrows and school desks. Remittances are funds or goods received by individuals or households from other parties who live elsewhere, whether within the same country or region, or in another part of the world. Rotating Savings and Credit Associations (RoSCAs) are community-based nancial arrangements involving a group of savers contributing a set amount to a common fund on a regular basis. Small loans are made from the fund to group members,
which, when repaid, become credit for another member. Savings and Credit Cooperatives: see credit unions. Self-help groups (SHGs) are community-based savings groups. Small and medium enterprises (SMEs) are small- and medium-sized businesses. In the development context, small businesses may have up to 20 employees and medium businesses may have up to 50 employees. Assuming a nondevelopment context, the European Commission denes small enterprises as those with fewer than 50 employees and medium enterprises as those with fewer than 250 employees.25 Solidarity lending is the provision of collateral-free loans to small groups of people (usually three to ve), using peer pressure as the primary motivator of repayment. Stepped lending is a process by which borrowers who repay loans on time are eligible for increasingly larger and perhaps more sophisticated loans. Technical and vocational education and training (TVET) programs prepare individuals for productive participation in the labor market by providing skills and knowledge needed for entry into the workforce. Short-term TVET programs provide the trainee with the minimum skills needed to produce a product or provide a service geared specically towards income generation. Long-term TVET programs are designed to provide in-depth instruction for a particular trade and prepare participants for a more highly skilled, technical position. Value chains encompass the full range of activities
346
A GLOSSARY
and services required to bring a product or service from its conception to sale in its nal markets, whether local, national, regional or global.26 Value chain analysis (VCA) is a market analysis tool used to assess how products gain value as they pass through the range of activities needed to bring a product to market. Village Savings and Loan Associations (VSLAs) are self-selected groups of about 10 to 25 people who invest their savings in a loan fund, from which members can borrow. Interest-bearing loans are initially provided for one to three months but, over time, may increase to six months or more. By marshalling small local pools of capital to satisfy household cash-management needs, VSLAs can provide immediately sustainable and protable savings, insurance and credit services to people who live in places where banks and MFIs do not have a presence. Vulnerable groups are those who may have particular vulnerabilities and/or special needs, and who may face restrictions accessing resources or livelihoods due to social, cultural, economic, physical or other constraints. So-called vulnerable groups may include women, young people, single femaleor child-headed households, separated children, older people, people with disabilities, people living with HIV/AIDS and other infectious diseases, and ex-combatants, among others.
NOTES
1 World Agroforestry Centre, Agroforestry Science at the Heart of the Three Environmental Conventions, www.worldagroforestry.org/ar2006/feature_essay.asp (accessed February 2009). Food and Agriculture Organization, Glossary of Aquaculture, www.fao.org//glossary/aquaculture/. International Labour Organization (ILO), The 2006 Reader: Implementing Sustainable Private Sector Development: Striving for Tangible Results for the Poor, International Training Centre of the ILO (2006): p. 66, www. bdsknowledge.org/dyn/bds/docs/497/PSDReader2006. pdf. ILO, Livelihood and Employment Creation: Business Development Services, ILOs Recommended Management and Policy Options for Employment Friendly Reconstruction in Sri Lanka (2005), www-ilo-mirror.cornell.edu/public/english/ region/asro/colombo/12businessdevelopmentservicesA. htm. ILO, Livelihood and Employment Creation: Cash-For-Work, ILOs Recommended Management and Policy Options for Employment Friendly Reconstruction in Sri Lanka (2005): p. 6, www-ilo-mirror.cornell.edu/public/english/region/ asro/colombo/12cashforworkA.htm. Ibid. ILO, Livelihood and Employment Creation: Community Contracting, ILOs recommended management and policy options for employment friendly reconstruction in Sri Lanka (2005): p. 6, www-ilo-mirror.cornell.edu/public/ english/region/asro/colombo/12communitycontractingA. htm. UNHCR, Livelihood Options in Refugee Situations: A Handbook for Promoting Sound Agricultural Practices (2002): pp. 35-36, www.unhcr.org/protect/ PROTECTION/406c2fae7.pdf. International Committee of the Red Cross, Restoring Contact between Families Separated by Armed Conicts and Natural Disasters, www.icrc.org/Web/eng/ siteeng0.nsf/htmlall/family_links?OpenDocument. World Bank, Foreign Direct Investment, in Glossary, Beyond Economic Growth, www.worldbank.org/depweb/ english/beyond/global/glossary.html. Inter-Agency Standing Committee, Guidelines on GenderBased Violence Interventions in Humanitarian Settings, www.humanitarianinfo.org/iasc/ pageloader.aspx?page=content-subsidi-tf_gender-gbv. World Bank, Gross Domestic Product, in Glossary, Beyond Economic Growth. www.worldbank.org/depweb/ english/beyond/global/glossary.html.
2 3
6 7
10
11
12
347
13
DFID, The SL Distance Learning Guide, DFID Sustainable Livelihoods Guidance Sheets, DFID adaptation of Chambers and Conway (1992) (April 1999), www.eldis.org/vle/upload/1/document/0901/ section1.pdf. UNHCR and World Conservation Union (IUCN), Livestock-keeping and Animal Husbandry in Refugee and Returnee Situations: A Practical Handbook for Improved Management (August 2005): p. 9, www.unhcr.org/protect/ PROTECTION/4385e3432.pdf. SEEP Network, Market Development in Crisis-affected Environments: Emerging Lessons for Achieving Pro-poor Economic Reconstruction (2007): p. viii, www.seepnetwork.org/content/library/detail/5659. Grameen Bank, www.grameen-info.org/index. php?option=com_content&task=view&id=32&It emid=91. FINCA International, www.villagebanking.org/site/ c.erKPI2PCIoE/b.2394157/#micronance. American Refugee Committee, The Stepped Approach for Improving Livelihoods (SAIL): An Implementation Manual for Refugee Camp & Post-conict Environment Programs, First edition, Glossary, www.arcrelief.org/site/ PageServer?pagename=programs_micro_enterprise. Craig Churchill, What is insurance for the poor? Part 1.1. In Protecting the Poor, Craig Churchill, Ed. ILO and Munich Re (November 2006): p.12, www.munichrefoundation.org/StiftungsWebsite/Projects/Microinsurance/ 2006Microinsurance/Microinsurance_Compendium.htm. UNHCR, Convention Relating to the Status of Refugees (1951), www.unhchr.ch/html/menu3/b/o_c_ref.htm. OECD, Ofcial Development Assistance (ODA), Glossary of Statistical Terms, http://stats.oecd.org/glossary/ detail.asp?ID=6043. Blench, Roger, You Cant Go Home Again: Pastoralism in the New Millennium, Overseas Development Institute, Pastoral Development Network, May 17, 2001, p. 6, www.odi.org.uk/networks/pdn/eps.pdf. USAID, Tools for Alliance Builders, Prepared by the Global Development Alliance Secretariat (September 10, 2004), www.encapafrica.org/meo_course/Course_Materials/ Module9--Special_Topics/PublicPrivate_and_FinancialIntermediation/Alliance_Builders_Toolkit_Guidance_2002. pdf. UNHCR, Annex 1.16: Relief Substitution. Appendix One, in Handbook for Self-reliance (August 2005): p. 162, www.unhcr.org/publ/PUBL/44bf40cc2.html. European Commission, SME Denition, Enterprise and Industry, as of May 2003, http://ec.europa.eu/enterprise/ enterprise_policy/sme_denition/index_en.htm.
26
USAID, The Value Chain Framework, USAID Brieng Paper (2008): p. 1, www.microlinks.org/ev_ en.php?ID=21629_201&ID2=DO_TOPIC.
14
15
16
17 18
19
20 21
22
23
24
25
348
Acknowledgments
The development of this eld manual has been a collaborative global effort. The Womens Refugee Commission particularly wishes to acknowledge Jenny Reid Austin, consultant, who, as the manuals chief editor, took the lead in the writing and rewriting of the chapters based on early research and drafts written by Womens Refugee Commission staff and many dedicated undergraduate, graduate and postgraduate student interns. We also wish to acknowledge the writing and editing assistance of Tim Morris, who helped in the early stages of the redrafting process. Our special thanks go to the many eld practitioners, resource experts, academics and United Nations agencies staff members who contributed valuable time providing input, comments and feedback. This project would not have been possible without the generous support of the United States Department of State Bureau of Population, Refugees, and Migration, the UK Department for International Development (DFID) and the Bill & Melinda Gates Foundation, all of which provided funding for the Womens Refugee Commissions three-year global livelihoods initiative, including pilot projects that informed this manual; the eld assessment missions, which conrmed current practice and sector needs; and the development of this eld manual and its subsequent global rollout. We also wish to thank the Starsh Foundation, which provided initial seed money for the project. The project was guided, shaped and managed by Dale Buscher, director of protection, Womens Refugee Commission, and Lauren Heller, livelihoods ofcer. Diana Quick, director of communications, assisted with the editing.
349
While it is not possible to thank everyone who contributed, we wish to acknowledge the following individuals and organizations for the specic and helpful contributions they made. We are grateful for the research and writing assistance of interns: Kristy Crabtree, Madeline England, Lisa Jamboury, Jessica Kiessel, Yana Kusayeva, Jeannine Lemaire, Ellen Prusinski, Trude Raizen, Sam Ray, Barri Shorey, Jennifer Shulte and Vladimir Sreckovic. We would also like to thank the following interns for their research and administrative assistance: Amber Callaway, Kenda J. Cunningham, Laura Cordero Herrera, Lisa Jamboury, Kristina Mitchell, Sam Ray and Barri Shorey. The Womens Refugee Commission extends its gratitude to the following individuals for providing comments on the nal drafts: Jenny Perlman Robinson, Womens Refugee Commission; Elizabeth Stites, Feinstein International Center, Tufts University; Terry Isert, American Refugee Committee; Laura Meissner, the SEEP Network; Alexia Deleligne, ILO/CRISIS; Owen Shumba, UNDP; Gala Roudy Fraser, UNHCR; Mima Perisic, UNICEF; Diana Guzmn Gmez, CHF International, Colombia; Duangporn Saussay, ZOA Refugee Care, Thailand; Bhim Muktan, International Development Enterprises, Nepal; Carrie Berg, International Rescue Committee; Lili-Marguerite Stern, International Rescue Committee; Line Pedersen, UNHCR; Gisela Thater, UNHCR; Christopher Brown, CHF International; Jennifer Marcy, CHF International; Mitos Urgel, Womens Education for Advancement & Empowerment (WEAVE), Thailand; and Ram Subedi, Asia Network for Sustainable Agriculture & Bioresources (ANSAB), Nepal. We would also like to thank the following individuals for their various helpful contributions to the eld manual: Shogufa Alpar, Womens Refugee Commission; Karri Goeldner Byrne, International Rescue Committee; Radha Rajkotia, International Rescue Committee; Aaron Evan Rippenkroeger, International Rescue Committee; Tom Hopkins, International Rescue Committee; Zaki Raheem, International Rescue Committee; Darin Kingston, International Rescue Committee; Niels Balzer, WFP; Arun Kashyap, UNDP; Rachel Locke, USAID; Benjamin Kauffeld, USAID Global Development Alliance; Tracy Gerstle, the SEEP Network; Timothy Nourse, Academy for Educational Development; Andrew Catley, Feinstein International Center, Tufts University; Patricia Weiss Fagen, Institute for the Study of International Migration, Georgetown University; Tania Kaiser, School of Oriental and African Studies, University of London; Marie-Christine Tremblay, CARE Canada; Mohammed Qazilbash, CARE International Kenya; Anna Young, Mercy Corps; Sara Ward, Mercy Corps; Reaz Uddin, BRAC, Bangladesh; Alinor Bernhard, International Committee of the Red Cross; Emmanuel Dennis, YES Kenya; Ken Weimar, KickStart International; Tom Kuhlman, Agricultural Economics Research Institute, Wageningen University, The Netherlands; Deborah Mulumba, Makerere University, Uganda; Cindy Horst, International Peace Research Institute (PRIO), Norway; David Hircock, Aveda Corporation, Inc.; Faud Strik, Strik Consulting; Mara Senz, Habitat for Humanity International; Ruth Campbell; Justin Dubois; Claire Dunigan; Emily Harwitt-Whewell; Jennifer Morgan; and Mary Morgan. We also would like to thank the many individuals and organizations who shared their time for interviews, shared case studies, and shared tools and resource materials. Finally, thank you to the refugees, IDPs and returnees with whom and for whom we have conducted our research. We hope that this eld manual will make a meaningful contribution to the lives and livelihoods of the displaced worldwide.
350
Feedback Form
We would appreciate your feedback on the Livelihoods Field Manual in order to strengthen our understanding of effective livelihoods programming. Please respond to the questions below and return the questionnaire to daleb@wrcommission.org. You can also ll out this form online at: www.womensrefugeecommission.org/livelihoods_survey.
Date: Name: Organization: Job Title: Address: Phone: Fax: Email:
1. Please indicate which livelihoods intervention chapter(s) you read or utilized: Training and Placement Programs For-Work Programming Building In-Camp Economies Supporting Agrarian Interventions Micronance Interventions Enterprise Development
351
1a. Which livelihoods intervention(s) did you and your organization develop or build upon?
1b. Was the information in the chapter(s) useful to you? What was particularly useful?
1c. What was not useful? Why?
1d. What challenges have you encountered while using the Livelihoods Field Manual and how did you resolve them?
2. Please indicate which tools and guidance you used from the Tools and Approaches section of this Field Manual to develop or strengthen a new or existing livelihoods intervention: Situation Analysis Conict Analysis Participatory Needs Assessment Participatory Rural Appraisal Market Assessment Value Chain Analysis Labor Market Assessment Organizational Capacity Assessment Monitoring & Evaluation 2a. Which of these tools were particularly useful? Why?
2b. Did you nd any challenges in using the tools? What were they?
2c. Have you utilized any other tools that your organization or other organizations have developed? What are these tools and how effective are they?
2d. What additional tools would make the Livelihoods Field Manual more relevant and useful for your work?
352
A FEEDBACK FORM
3. Please indicate whether you read or utilized any of the following chapters: Working with Host Governments Public-Private Partnerships Leveraging Remittances 3a. Were these chapters useful? In what ways?
3b. What was not useful?
4. Is the Building Livelihoods Field Manual relevant to your work? If not, why not?
5. Can you share any lessons learned and/or examples of good practice from your experience using the Building Livelihoods Field Manual? Is there any information that is missing that you would nd helpful in informing the development of a livelihoods intervention or contributing to economic security for displaced populations?
6. Is the Building Livelihoods Field Manual easy to use? If not, what could be improved?
7. What general comments or feedback do you have on any portion(s) of the Building Livelihoods Field Manual?
Please return this questionnaire to daleb@wrcommission.org c/o Womens Refugee Commission 122 East 42nd Street New York, NY 10168-1289 USA You can also ll out this form online, at the following web link: www.womensrefugeecommission.org/livelihoods_survey THANK YOU FOR YOUR FEEDBACK! IT WILL HELP US IMPROVE OUR WORK.
353

122 E. 42nd Street New York, NY 10168 womensrefugeecommission.org

Livelihoods Manual

Enviado por

Dados do documento

Descrição original:

Direitos autorais

Formatos disponíveis

Compartilhar este documento

Compartilhar ou incorporar documento

Opções de compartilhamento

Você considera este documento útil?

Este conteúdo é inapropriado?

Direitos autorais:

Formatos disponíveis

Livelihoods Manual

Enviado por

Direitos autorais:

Formatos disponíveis

MAY 2009

WOMENS REFUGEE COMMISSION

WOMENS REFUGEE COMMISSION

WOMENS REFUGEE COMMISSION

WOMENS REFUGEE COMMISSION

WOMENS REFUGEE COMMISSION

Introduction Conceptual Framework

327 329 333 337 341 349 351

WOMENS REFUGEE COMMISSION

WOMENS REFUGEE COMMISSION

HOW TO USE THIS FIELD MANUAL

WOMENS REFUGEE COMMISSION

STEP 1: UNDERSTANDING THE CONTEXT

Figure: DFID Sustainable Livelihoods Framework10

Figure 1. Sustainable livelihoods framework Figure 1. Sustainable livelihoods framework

S = Social Capital P = Physical Capital S = Social Capital P = Physical Capital

LIVELIHOOD STRATEGIES LIVELIHOOD STRATEGIES

LIVELIHOOD OUTCOMES LIVELIHOOD OUTCOMES

WOMENS REFUGEE COMMISSION

Figure: Framework: A Livelihoods Model Adapted for Violent CHEs16

WOMENS REFUGEE COMMISSION

STEP 2: SELECTING AN INTERVENTION

WOMENS REFUGEE COMMISSION

STEP 3: INSTITUTIONAL AND ORGANIZATIONAL CAPACITY ASSESSMENT

WOMENS REFUGEE COMMISSION

STEP 4: PLANNING TO MONITOR AND EVALUATE OUTCOMES

PROMOTING EQUAL ACCESS FOR WOMEN

WOMENS REFUGEE COMMISSION

WOMENS REFUGEE COMMISSION

Working with Host Governments

WORKING WITH HOST GOVERNMENTS

WOMENS REFUGEE COMMISSION

GLOBAL, NATIONAL AND LOCAL DYNAMICS

WORKING WITH HOST GOVERNMENTS

CASE STUDY Refugee Dependence and Economic Insecurity in Kenya4

WOMENS REFUGEE COMMISSION

WORKING WITH HOST GOVERNMENTS

CASE STUDY Local Development in Western Tanzania8

WOMENS REFUGEE COMMISSION

IDENTIFYING THE RIGHT TO LIVELIHOODS FOR THE DISPLACED

A. THE RIGHT TO WORK

WORKING WITH HOST GOVERNMENTS

B. FAIR TREATMENT, FAIR WAGES AND SUITABLE WORKING CONDITIONS

WOMENS REFUGEE COMMISSION

THE INTERNATIONAL LEGAL AND NORMATIVE FRAMEWORK APPLICABLE TO REFUGEES

WORKING WITH HOST GOVERNMENTS

WOMENS REFUGEE COMMISSION

WORKING WITH HOST GOVERNMENTS

GUIDANCE FOR DETERMINING STATES INTERNATIONAL LEGAL OBLIGATIONS TO REFUGEES

WOMENS REFUGEE COMMISSION

GUIDANCE FOR UNDERSTANDING AND UTILIZING NATIONAL POLICIES

WORKING WITH HOST GOVERNMENTS

it possible to compel the host government to reevaluate its existing policy.42

WOMENS REFUGEE COMMISSION

GUIDANCE FOR UNDERSTANDING AND UTILIZING LOCAL POLICIES

IDENTIFYING LOCAL AND NATIONAL STAKEHOLDERS

WORKING WITH HOST GOVERNMENTS

IDENTIFYING POTENTIAL INTERNATIONAL ADVOCATES

UNDERSTANDING THE DEVELOPMENT CONTEXT

WOMENS REFUGEE COMMISSION

IDENTIFY MARKET AND SECTOR DEVELOPMENT

IDENTIFY LABOR MARKET DEMANDS

WORKING WITH HOST GOVERNMENTS